Mitsubishi UFJ analyst Lee Hardman said the dollar may struggle to strengthen unless the Federal Reserve, at its upcoming decision, cements market expectations that the tightening cycle will persist longer. LSEG data show markets have almost fully priced a 25bp hike on Wednesday and about 95bp of cumulative hikes by Sep 2027. Hardman said that pricing raises the bar for the Fed to send a more hawkish signal and that Fed communication is unlikely to clearly indicate how much further tightening wi

Mitsubishi UFJ analyst Lee Hardman said the dollar may struggle to strengthen unless the Federal Reserve, at its upcoming decision, cements market expectations that the tightening cycle will persist longer. LSEG data show markets have almost fully priced a 25bp hike on Wednesday and about 95bp of cumulative hikes by Sep 2027. Hardman said that pricing raises the bar for the Fed to send a more hawkish signal and that Fed communication is unlikely to clearly indicate how much further tightening will be needed.