OCBC analysts expect the Federal Reserve to hold rates steady before a final 25bp hike in December, keeping the US Dollar supported despite limited upside potential.
The US Dollar remains supported by the Federal Reserve's current pause, though sustained upside is constrained by market expectations of a terminal rate cycle. OCBC analysts anticipate a final 25 basis point hike in December, which will serve as a key pivot point for the currency's trajectory against the backdrop of global central bank policy shifts.
The Dollar is expected to remain supported but with limited upside potential, contingent on a final 25bp hike in December.
The primary drivers are the Federal Reserve's pause, underlying inflation trends, and the policy decisions of other central banks like the ECB.
OCBC analysts Sim Moh Siong and Christopher Wong anticipate the Federal Reserve will maintain a pause, providing a floor for the US Dollar. The firm projects a final 25 basis point rate hike in December, noting that persistent underlying inflation and global central bank policy shifts remain critical drivers for the currency's trajectory.
OCBC expects the Fed to maintain its current pause before implementing a final 25 basis point rate hike in December.
The Fed's pause is expected to keep the US Dollar supported, though analysts note that sustained upside potential remains capped.