The US Dollar (USD) has been gathering strength against its rivals, buoyed by hawkish comments from Federal Reserve (Fed) officials. Economists at Commerzbank believe the greenback will remain resilient for the time being.
Cleveland Fed President Loretta Mester and St. Louis Fed President James Bullard have both argued in favour of a 50 basis points (bps) rate hike at the January meeting. While both of these members are known for their hawkish stance, economists are expecting a more cautious approach, particularly since consumer price inflation has recently fallen.
However, if the US data continues to surprise on the upside, other FOMC members may join Mester and Bullard, which could further benefit the USD.
The US Dollar has been one of the most resilient currencies in recent years, enjoying a period of strength against its rivals. This has been driven by a number of factors, including the Federal Reserve’s decision to raise interest rates, the strong US economy, and the strength of the US Dollar relative to other currencies.
The US Dollar has also been supported by a number of hawkish comments from Fed officials, including Mester and Bullard. Mester and Bullard have both argued in favour of a 50 bps rate hike at the January meeting, which could further benefit the USD.
The US economy has also been strong, with GDP growth and low unemployment rates. This has been a major factor in the strength of the USD, as investors have looked to the US as a safe haven for their investments.
The US Dollar has also been supported by a number of other factors, including the strength of the US Dollar relative to other currencies. This has been driven by the fact that the US Dollar is the world’s reserve currency, meaning that it is widely used for international trade and investment.
Looking ahead, economists at Commerzbank believe the US Dollar will remain resilient for the time being. This is due to a number of factors, including hawkish comments from Fed officials, the strong US economy, and the strength of the US Dollar relative to other currencies.
However, if the US data continues to surprise on the upside, other FOMC members may join Mester and Bullard, which could further benefit the USD. In addition, if inflation continues to remain low, the Federal Reserve may not raise interest rates as aggressively as expected, which could also benefit the USD.
Overall, the US Dollar is expected to remain supported for the time being, thanks to a number of factors. These include hawkish comments from Fed officials, the strong US economy, and the strength of the US Dollar relative to other currencies. However, if the US data continues to surprise on the upside, other FOMC members may join Mester and Bullard, which could further benefit the USD.