Bar set high for change in Fed’s October meet – RBS

FXStreet (Delhi) – Brian Daingerfield, FX Trading Strategist at RBS, suggests that with no press conference scheduled and no update to the Fed’s projections for growth, inflation, or ‘dots’, the bar is already set fairly high for any change in Fed’s October policy meet which concludes today.

Key Quotes

“The fact that the FOMC will release only its post-decision FOMC statement this week severely limits the Fed’s ability to communicate a change in policy outlook.”

“We are expecting few changes to the statement, though it does feel as though the risks around potential changes in language on the labour market and inflation are skewed in the dovish direction.”

“In a sense, less news is good news for the USD – the fewer changes the FOMC makes to the statement, the more positive for the USD at the margin.”