Barclays: If the Fed Holds Steady or Turns Dovish, the Dollar May Face Pressure

According to a report by Golden Finance, on September 14, Barclays economists stated in a research report that uncertainty surrounding the Federal Reserve's interest rate decisions and the overall policy objectives of the United States has made this week's Federal Open Market Committee (FOMC) meeting a focal point for the market. Last week's U.S. Consumer Price Index (CPI) data was interpreted by the market as essentially locking in a 25 basis point rate hike. Economists added that if the Federal Reserve unexpectedly keeps rates unchanged or signals a rate hike trajectory far below current market expectations (approximately three rate hikes), it could further lead to sustained short-term weakness in the U.S. dollar. (Jin10)