ANZ remarks on the upcoming Federal Open Market Committee (FOMC) meeting. The statement is due at 1800 GMT on Wednesday 27 July 2022. Federal Reserve Chair Powell will follow with his press conference at 1830 GMT.
- "While a 75bp hike at next week's FOMC looks likely, this has been fully priced by markets and so is less likely to propel the USD to fresh highs. With large hikes an established norm amongst policymakers globally, 75bp no longer feels so significant. Nonetheless, appetite to hold dollars is strong, as the European Union's economic and geopolitical challenges limit the euro's upside. This is despite the European Central Bank's 50bp start to the EU tightening cycle," ANZ notes.
- "We expect that persistent strength in the USD will continue to cap upward momentum in the AUD and NZD, even as RBA hawkishness looks set to gather pace around next week's Q2 inflation print," ANZ adds.
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