Dollar at Strongest Level in 7 Months

The video discusses market expectations regarding the Fed's minutes and potential allies among dissenters. It explores the impact of a rate hike on the dollar, noting a pattern of initial rise followed by a fall. The strengthening of the sterling is attributed to Brexit developments, with Theresa May seeking parliamentary backing. Analysts predict the pound-dollar rate to stabilize around 1.18, supported by a chart analysis showing significant movement towards the third standard deviation.

Explain the concept of 'buy the rumor, sell the fact' in the context of monetary policy.

What are analysts predicting for the pound dollar exchange rate, and what factors contribute to this prediction?