17 Jun 2015
Citi: FOMC meeting today unlikely to support USD – eFXnews
FXStreet (Barcelona) - The eFXnews Team notes, Citi Research Team sees a potential dovish outcome in today’s FOMC statement which would be somewhat USD negative.
Key Quotes
“FOMC unlikely to support USD or rates this time around. The market pivots for FOMC are:
1) How on track the Fed sees the US economy for liftoff and how concretely they signal a September liftoff
2) The 2015 dots are likely to show a big shift down – their problem is that it is difficult to convey neutral, which is 1 hike likely, 2 possible, but no commitment unless data turn out right.”
“We go into this seeing the Fed as leaning to dovish, and hence somewhat USD negative. They do have not much incentive to sound concrete about a September hike this far in advance and would not want asset market reaction in advance of an anticipated September hike to derail an actual September hike.”
“Both their commentary and the dots shifts are likely to be less committal to a hike than the market now expects.”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“FOMC unlikely to support USD or rates this time around. The market pivots for FOMC are:
1) How on track the Fed sees the US economy for liftoff and how concretely they signal a September liftoff
2) The 2015 dots are likely to show a big shift down – their problem is that it is difficult to convey neutral, which is 1 hike likely, 2 possible, but no commitment unless data turn out right.”
“We go into this seeing the Fed as leaning to dovish, and hence somewhat USD negative. They do have not much incentive to sound concrete about a September hike this far in advance and would not want asset market reaction in advance of an anticipated September hike to derail an actual September hike.”
“Both their commentary and the dots shifts are likely to be less committal to a hike than the market now expects.”
This content has been provided under specific arrangement with eFXnews.