DBS senior FX strategist Philip Wee said the dollar could be pressured by divergence in forward guidance after the Fed removed forward guidance and held rates steady. Wee said Fed chair Kevin Warsh’s move has left policy in a “monetary mirror maze,” increasing volatility and leaving markets groping in the dark. By contrast, the ECB’s unified signalling of a September rate hike gives the euro a clear relative advantage. If the Bank of England breaks consensus and unexpectedly hikes later today, t

DBS senior FX strategist Philip Wee said the dollar could be pressured by divergence in forward guidance after the Fed removed forward guidance and held rates steady. Wee said Fed chair Kevin Warsh’s move has left policy in a “monetary mirror maze,” increasing volatility and leaving markets groping in the dark. By contrast, the ECB’s unified signalling of a September rate hike gives the euro a clear relative advantage. If the Bank of England breaks consensus and unexpectedly hikes later today, the pound would likely strengthen.