Economists at ING think there is room for the Dollar to recover some ground on the back of a moderate hawkish surprise by the Fed.

Fed to hike by 25 bps

“It’s a close call, but we expect a 25 bps hike by the Fed today. Ultimately, Powell’s primary goal is to restore investor confidence and a hold might signal a lack of trust in the financial system.”

“The dot plots may also be revised slightly higher, and the Dollar could recover a bit.”

“Still, the gradual improvement in sentiment points to another USD decline ahead.”