Christine Kobi-Nielsen from Danske Bank argues that the Fed will not turn dovish despite falling oil prices, as underlying US inflation remains sticky. She expects the Fed to remove its easing bias and maintain a hawkish hold. She recommends buying the dollar, expecting EUR/USD to move lower. On the UK, she sees one more rate hike from the BoE but believes the market will eventually price out hikes, especially if energy prices fall further.

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Danske Bank 2.5
Commercial Bank
Christine Kobi-Nielsen 7.5
6/17/2026 1:55:23 PM
dxy
I think that we'll see EUR/USD coming lower... it will definitely open up for some more dollar strength.
yields
The Fed will remove easing bias but not hike, keeping short-term yields rangebound. The focus is on data dependency.

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