Dollar May Be Weighed by Forward-Guidance Divergence Between Fed, Other Central Banks -- Market Talk

0214 GMT - The dollar may be weighed by divergence in forward guidance between the Fed and other central banks, DBS Group Research's Philip Wee says in a commentary. "By scrapping forward guidance and holding rates flat, Fed Chairman Kevin Warsh marched the Fed into a monetary 'hall of mirrors' with volatile results," the senior foreign-exchange strategist says. Warsh leaves U.S. markets "stumbling in the dark," Wee says. By contrast, the European Central Bank was more unified in flagging a September rate increase, handing the euro a distinct comparative advantage, he notes. The British pound stands to appreciate "if the Bank of England defies the widespread consensus of a hold and surprises with a rate hike later today," Wee adds. The U.S. Dollar Index is little changed at 100.915, LSEG data show. (ronnie.harui@wsj.com)

(END) Dow Jones Newswires

July 29, 2026 22:15 ET (02:15 GMT)