The market is sending a clear message to Federal Reserve officials who say a September interest rate hike is still on the table, according to foreign exchange strategist Boris Schlossberg.
"Basically they're saying, show me," BK Asset Management's head of forex strategy said Wednesday on CNBC's "Squawk Box,"
New York Federal Reserve President William Dudley on Tuesday said it's "possible" the Federal Open Market Committee could raise rates at its September meeting, citing his view that U.S. economic growth will pick up in the second quarter and investors had become complacent in their belief low rates would continue to bolster stocks.
"Certainly the market thinks it's kind of absurd. I mean, the biggest dichotomy in the market right now is what the Fed is saying and what the market is doing," Schlossberg told CNBC, noting the dollar has gotten "destroyed" in the last few days.
The dollar index was slightly higher on Wednesday, but has fallen nearly 1 percent in the last week, a sign traders are not expecting investors to pile into the dollar to buy up U.S. Treasurys ahead of a rate hike.