FX markets not positioned for Fed hike

Investors are still sceptical of Fed action, and participants are looking at commodity currencies for better opportunities

Dollar bills
Saywell: "Had we received a surprise hike yesterday, we think there would have been a dramatic increase in the dollar."

The foreign exchange market is short dollars, and is not positioned for a benchmark interest rate hike by the US Federal Reserve, said Steve Saywell, global head of FX strategy at BNP Paribas during a press briefing on September 22.

"Had we received a surprise hike yesterday, we think there would have been a dramatic increase in the dollar," Saywell said. "The market has effectively had 18 months of disappointment with chasing the dollar higher, and has effectively reduced dollar positioning for

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