– Fed to address Delta variant’s arrival to U.S.
– Could trigger some USD softness
– But unlikely to waver from ‘tapering’ plans
– USD risks skewed higher says Bank of America
Above: File image of Jerome Powell. Source: Federal Reserve.
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The highlight of the week for the U.S. Dollar and global markets approaches in the form of Wednesday’s Federal Reserve policy update.
The Federal Reserve (Fed) is tipped by analysts to confirm they intend to taper their quantitative easing programme in coming months, which would be a supportive outcome for the Dollar.
However, there are also downside risks for the currency as the Fed could be forced to address rising U.S. covid cases which come courtesy of the Delta variant…