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The Fed's resolution hits tonight, how will the dollar go?
TD Securities expects the Federal Reserve to hike rates one last time by 25 basis points tonight. Even so, the FOMC is likely to continue validating the dot plot while maintaining a hawkish stance, analysts believe. The bank follows a tried-and-true strategy of "having your cake and eating it too". TD Securities believes that this plan will fail and will cause the dollar to fall. Since the Fed raised interest rates for the first time in 2022, there has been a very clear "buy on rumors, sell on Fed meetings" around policy meetings. The greenback rose ahead of the FOMC meeting, but then retreated throughout the day and overnight. TD expects the dollar's selling pattern to continue today and believes it will be strong enough to overshadow the Fed's statement.