The US dollar could face downward pressure if the Federal Reserve opts to keep interest rates unchanged during its ongoing meeting, according to TD Securities analysis. Market participants appear to be overestimating the likelihood of a rate hike under Federal Reserve Chair Kevin Warsh’s leadership. The federal funds rate is expected to remain within the 3.50% to 3.75% range, with current pricing reflecting a divided stance on whether a rate hike will occur. Implied probabilities for a rate hike at the July meeting have fallen to 22.2%, down from 26% just 24 hours ago.
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