ING: Dollar likely to find support this week on a hawkish Fed backdrop, higher
energy prices and pre-meeting long positioning. TD Securities: Dollar should
remain strong near term but positioning is crowded; once U.S. midterm event risk
fades and seasonal year-end flows emerge, the dollar could give back gains.
Danske Bank: If the Fed holds rates and officials avoid explicit forward
guidance, Treasury yields may slip modestly and the curve could steepen; EUR/USD
may rally briefly but any rebound may be short-lived. PIMCO: Earlier increases
in long-term Treasury yields have offset some equity-driven wealth effects; the
Fed’s assessment of financial conditions will influence markets’ views on the
need for further tightening. MUFG: An unexpected hike would be clearly hawkish;
a pause is not inherently dovish — a hold accompanied by strong anti-inflation
rhetoric could still prompt markets to reprice higher-for-longer. Reuters:
Falling oil has eased some inflation pressure and helped gold rebound, but
renewed energy inflation, high U.S. yields and a strong dollar would pressurize
bullion. U.S. Bancorp: Housing is visibly strained by high rates though overall
activity remains resilient; sustained hawkish Fed messaging would keep financing
stress elevated for real estate and other rate-sensitive sectors.
