Forex
Home›Forex›Major Pairs›Dollar holds support as ISM data and Fed expectations…
Dollar holds support as ISM data and Fed expectations persist
Fed funds futures continue to price a full 25 bps hike by December, keeping the dollar supported despite trimmed recent gains.
Brown Brothers Harriman said the US dollar has pared some recent gains but remains supported by strong US data and expectations for Federal Reserve policy.
In particular, the firm pointed to September ISM services and manufacturing indicators signaling resilient growth, while the ISM Prices Paid measures suggest inflation pressures are intensifying.
The outlook is reinforced by Fed funds futures still discounting a full 25 bps hike to a 4.00% to 4.25% range in December, which BBH said underpins the dollar.
BBH also cited the Atlanta Fed GDPNow estimate of 3.7% annualized real GDP growth for Q3, and noted that maintaining that pace alongside fiscal consolidation would be a tailwind, though it called that scenario unlikely.