{
  "id": 9099327,
  "title": "US Dollar: Fed support seen fading – Commerzbank",
  "url": "https://urgent.news/2026/09/22/us-dollar-fed-support-seen-fading-commerzbank",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-22T06:14:45.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/us-dollar-fed-support-seen-fading-commerzbank-202609220614"
  },
  "original_language": "en",
  "account": "Commerzbank's Antje Praefcke highlights that while the Federal Reserve's unanimous rate hike and hawkish tone have bolstered the US Dollar, markets have already accounted for additional tightening of approximately 75 basis points by mid-2027. She contends that persistent hawkish communication is required to maintain current US Dollar levels, yet sees downside risks if rate forecasts are adjusted lower or political strife over monetary policy arises. The Fed has jointly increased interest rates, and these actions have indeed been hawkish; however, further measures could follow. To sustain the Dollar's gains, more needs to be done. With the market having already priced in substantial interest rate increases (+75 basis points through July 2027), these expectations must persist to prevent losses in the USD. Achieving an extra lift for the greenback is proving increasingly challenging. Our analysts predict that while the Fed will take another step in December, that will be the extent of it, as geopolitical tensions in the Middle East are expected to gradually ease, and energy prices are anticipated to decline alongside. Nevertheless, if the market needs to revise its interest rate expectations downward, this would signal a downward adjustment in the dollar. Furthermore, the U.S. president may increasingly question the Fed's monetary policy. Therefore, it may be prudent to capitalize on the present Dollar levels as advantageous opportunities for hedging, as the risks of the Dollar losing ground again outweigh the upside potential. The AUD/USD pair gains bids above 0.7100 in the Asian session on Tuesday, buoyed by hawkish remarks from RBA Assistant Governor Sarah Hunter and Governor Michele Bullock. However, escalating Middle East tensions and the Fed's hawkish outlook continue to support the bullish Dollar narrative, which may constrain the pair. USD/JPY sees slight gains trading near 157.50 in the Asian session on Tuesday, as intervention fears temper losses for the Japanese Yen. Nonetheless, the Bank of Japan's dovish rate hike to a 31-year high keeps Japanese Yen bulls in a disadvantaged position. Simultaneously, the US Dollar maintains a bullish outlook driven by the Fed's hawkish stance and rising Middle East tensions, providing momentum for the pair. Gold experiences some selling pressure following a modest Asian session uptick, slipping below $4,350 in the final hour, though downside appears limited. The U.S. Federal Reserve's hawkish outlook is considered a key driver of the negative impact on the non-yielding yellow metal. West Texas Intermediate (WTI) attracts some buyers during the Asian session, breaking a four-day decline to sub-$91.00 levels, or nearly a two-week low reached the prior day. The commodity is currently trading just below the $93.00 mark, up about 1.40% for the day, with the focus remaining on the Middle East crisis. The Bank of Japan (BoJ) raises its short-term interest rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalization of monetary policy and aligning with what many have been anticipating for weeks.",
  "summary": "Commerzbank’s Antje Praefcke notes that while the Federal Reserve’s (Fed) unanimous rate hike and hawkish tone have supported the Dollar, markets already discount further tightening of about 75 basis points by mid-2027.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "FXStreet",
        "title": "Euro: Downtrend eyes 1.1400 support against US Dollar – UOB",
        "url": "https://urgent.news/2026/09/22/euro-downtrend-eyes-1-1400-support-against-us-dollar-uob",
        "published": "2026-09-22T06:04:20.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}