Fed Preview: Powell could trigger the end of the dollar panic trade

The Fed’s view into the next quarter and through the end of the year will be the paramount interest at Wednesday’s FOMC meeting, FXStreet’s analyst Joseph Trevisani reports.

Key quotes

“The Fed will likely use its scheduled April meeting to assess the current and future states of the US economy and to project a message of vigilance, determination and hope to the financial community and the country at large.”

“An optimistic set of projections from the central bank and a hopeful and positive assessment for the US economy from Jerome Powell, especially with a number of states lifting restrictions, will reinforce the equity rally and could begin the end of the dollar panic trade.” 

“Expect the Fed to be cautiously upbeat, confident of its policy choices and ready to act if needed.”