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Credit Agricole: FOMC meeting could lead to further losses in the DXY - eFXnews

FXStreet (Łódź) - The eFXnews team comment that in the opinion of Credit Agricole Fed's monetary policy meeting on Wednesday could lead to further declines in the USD index.

Key quotes

"We suspect the FOMC meeting could lead to further losses in the DXY after is declined in two of the past three weeks. We highlight two potential risks for the USD from the FOMC."

"First, minor tweaks to the statement are possible, which could highlight the downside risks to global growth. The Fed could point to a strong dollar as a culprit for a pre-emptive tightening in financial conditions."

"Second, the 'considerable time' language is likely to stay put, suggesting that the Fed will stay put at least until mid-2015. Keep in the mind, the Fed Fund futures is pricing in a late 2015 lift off date from mid-2015 nearly a month ago."

"In any event, this week’s meeting is likely neutral or negative for the USD, especially given market positioning and limited scope for a hawkish surprise."

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