USD Q1 2022 Fundamental Forecast: Dollar’s Hawkish Path Is N…
(MENAFN- DailyFX)
The US central bank announced a significant shift in its monetary policy stance to end 2021, but the ultimate impact of the more hawkish bearing seemed to barely register for the Dollar and risk assets in general. If we were to take the lack of direction of this systemically important shift at face value, it would be easy to interpret that some other fundamental consideration is directing the Greenback – or that we have simply disengaged from economic and financial currents altogether. However, it would be short-sighted to believe that some of the most influential winds in the market no longer matter. Anticipation bolstered by forward guidance certainly helped to soften the blow of the late news, but thinned liquidity was arguably the most distortionary aspect. As we move into 2022, markets will fill back out and the Fed will find itself near the hawkish end of the pack. So…
