RABOBANK analyst Jane Foley said the Fed may seek to dampen rate‑hike
expectations in its upcoming policy decision. The bank still forecasts a 25bp
hike but warns the Fed risks undermining market confidence in further tightening
because markets have over‑priced policy tightening for next year. Foley said the
dollar could weaken in the near term, but a large sell‑off is unlikely given
external vulnerabilities elsewhere — notably limited UK fiscal space and the
euro area’s status as an energy importer. RABOBANK sees EUR/USD trading around
1.16 over the next 1–3 months.