In Countdown to Fed, Traders Keep Eye on Dollar's 2004 Decline
- Commonwealth Bank draws parallel to previous tightening cycles
- Futures contracts show a 76% probability of rate increase
Fed, Equities, Dollar: Are Markets Prepared for Liftoff?
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With the Federal Reserve’s interest-rate decision hours away, currency traders are on alert for a repeat of dollar declines that followed the start of tightening cycles in 2004, 1999 and 1994 on speculation that a boost is already in the price.
Intercontinental Exchange Inc.’s U.S. Dollar Index, which tracks the greenback against six peers, halted two days of gains on Wednesday, even with futures contracts showing a 76 percent likelihood that the Federal Open Market Committee will raise its benchmark from near zero later on Wednesday.