The US Dollar Index (DXY) attempts to cling above the 100.00 psychological level on Friday after a nearly 1.5% selloff in the previous three days, as the Federal Reserve’s (Fed) lack of forward guidance at Wednesday’s monetary policy meeting raised concerns that the bank might fail on its commitment to fight inflation. Experts from some of the world’s major commercial banks agree that this stance might trigger a long squeeze of global USD positions in the coming weeks.
Analysts at ING report that the post-FOMC Dollar selloff accelerated amid market concerns that the Fed “may be reluctant to translate its price stability rhetoric into…
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