29 Apr 2015
FOMC unlikely be a game changer - RBS
FXStreet (Guatemala) - Analysts at RBS noted the Fed coming up today and sad that they don't see today's FOMC statement as a 'game changer' for the USD.
Key Quotes:
"There is little doubt that market participants expect a dovish tone in the statement in light of the further moderation in economic indicators since the FOMC last met, and we agree."
"With the rates market pricing the first full rate hike out of December and the USD Index testing its lowest level since early March, we see the market as well prepared for a dovish tinge from the FOMC statement."
"The FOMC is moving to pure data dependence, and in a data dependent environment the value of FOMC signalling and communication is diminished because the FOMC appears less willing to pre-commit to policy."
Key Quotes:
"There is little doubt that market participants expect a dovish tone in the statement in light of the further moderation in economic indicators since the FOMC last met, and we agree."
"With the rates market pricing the first full rate hike out of December and the USD Index testing its lowest level since early March, we see the market as well prepared for a dovish tinge from the FOMC statement."
"The FOMC is moving to pure data dependence, and in a data dependent environment the value of FOMC signalling and communication is diminished because the FOMC appears less willing to pre-commit to policy."