11 Dec 2013
Flash: US to strengthen – BTMU
FXstreet.com (London) - Lee Hardman at The Bank of Tokyo-Mitsubishi UFJ
Noted the comments from the Fed’s Bullard on Monday and suggests that the dollar will gradually strengthen.
Key Quotes:
“St Louis Fed President Bullard, a voter on the FOMC this year, stated overnight that “a small taper might recognize labour-market improvement while still providing the committee the opportunity to carefully monitor inflation during the first half of 2014””.
“He also cautioned that “should inflation not return toward target, the committee could pause tapering at subsequent meetings”. The comments highlight that the QE tapering is also likely to be slow and gradual process which persists through most of 2014”.
“We still anticipate that the US dollar will gradually strengthen alongside the US economy as Fed policy is normalized”.
Noted the comments from the Fed’s Bullard on Monday and suggests that the dollar will gradually strengthen.
Key Quotes:
“St Louis Fed President Bullard, a voter on the FOMC this year, stated overnight that “a small taper might recognize labour-market improvement while still providing the committee the opportunity to carefully monitor inflation during the first half of 2014””.
“He also cautioned that “should inflation not return toward target, the committee could pause tapering at subsequent meetings”. The comments highlight that the QE tapering is also likely to be slow and gradual process which persists through most of 2014”.
“We still anticipate that the US dollar will gradually strengthen alongside the US economy as Fed policy is normalized”.