DXY is right at resistance. Rate hikes are behind us. The Fed is going to cut starting today, as many as 7 times by April next year. Is this the turning point for DXY?
CME Fedwatch Tool reading indicates zero probability of Fed rate hike for rest of 2019 and up to 5 cuts (total 125 points) by last meeting.
Nearly 24 hours after FOMC last night, CME Fedwatch Tool is showing collapse in rate hike probability for rest of this year.
We are looking at increase in expectation of Fed rate hikes this year 2019 versus just last week based on CME Fedwatch Tool. Just last week market was looking at virtually no hike and odds of a rate cut but now we are back in 2-hikes territory.
Despite the small numbers involved, Fedwatch tool now indicates possibility of two rate hikes in 2019 and no cut in the first half of the year. This is a hawkish swing from just 7 days ago.