Mitsubishi UFJ: Federal Reserve's decision difficult to boost US dollar

Mitsubishi UFJ analyst Lee Hardman said that unless the Federal Reserve sends a more hawkish signal to raise interest rates, the US dollar is unlikely to strengthen. LSEG data shows that the market has digested expectations of a 25 basis point rate hike on Wednesday and a cumulative rate hike of nearly 95 basis points by September 2027. Lee Hardman believes that this pricing sets a higher threshold for the Federal Reserve to send a more hawkish signal, and the Fed's communication is unlikely to clearly convey how much tightening is needed in the future.