27 Apr 2015
FOMC meeting seen on the hawkish side – Danske Bank
FXStreet (Edinburgh) - Analysts at Danske Bank expect this week’s FOMC meeting to be tilted towards the USD side.
Key Quotes
“Although the changes to the language are not major, we could see an upward move in rates following the statement”.
“During March, market participants have adjusted their expectations of a first fed funds rate hike from October to December/January as data has continued to disappoint”.
“If the FOMC downplays the weakness in data, as we expect, and acknowledges the latest stabilisation in core inflation, we believe the statement will push US rates higher and data released over the coming week should also work in that direction”.
Key Quotes
“Although the changes to the language are not major, we could see an upward move in rates following the statement”.
“During March, market participants have adjusted their expectations of a first fed funds rate hike from October to December/January as data has continued to disappoint”.
“If the FOMC downplays the weakness in data, as we expect, and acknowledges the latest stabilisation in core inflation, we believe the statement will push US rates higher and data released over the coming week should also work in that direction”.