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FOMC to be scrutinized closely for lift-off clues - MUFG

FXStreet (Delhi) – Lee Hardman, Currency Analyst at MUFG, suggests that the release of the latest FOMC policy statement will be scrutinized closely to see if it is consistent with market expectations which have pushed back the timing of the first Fed rate hike into next year.

Key Quotes

“The statement is likely to acknowledge that economic and labour market growth has moderated recently which may satisfy market expectations looking for the Fed to delay raising rates. However, it remains unlikely that the Fed will explicitly rule out beginning to raise rates this year leaving the decision data dependent in the coming months.”

“The US dollar may weaken modestly following the release of the statement but it is unlikely to derail its renewed upward momentum. The Fed still appears relatively hawkish when overseas central banks are increasingly shifting to ease monetary policy. The US dollar’s recent rebound is unlikely to overly concern the Fed either as financial conditions have eased significantly since their last meeting in September.”

Fed in full swing today as market look for December lift-off clues – TDS

Cristian Maggio, Head of Emerging Markets Strategy at TD Securities, suggests that the key question investors will look to answer will be whether recent slowing in economic growth momentum is sufficient to rule out a December rate hike, or whether the Fed will continue to keep the 2015 dream alive.
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USDCAD: Prone to two way risk ahead of the FOMC - TDS

Research Team at TD Securities, suggest that with no data in Canada today, the focus will be exclusively on the Fed.
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