USD supported on Central Band divergence - BTMU

FXStreet (Guatemala) - Analysts at Bank of Tokyo Mitsubishi explained that the Fed hiking expectations have weighed on the greenback but note the divergence of Central Banks still is supportive.

Key Quotes:

"Dampened expectations for Fed policy tightening as the projected timing of the first rate hike has been pushed back into next year have recently weighed on the US dollar."

"However as overseas central banks such as the BoC and ECB have also adopted more dovish policy stances over the past week, it has made Fed policy expectations appear again relatively more hawkish providing support for the US dollar. It is a familiar dynamic from over the last year or so."