9 Jul 2014
Tension rises ahead of FOMC minutes - Deutsche Bank
FXStreet (Łódź) - Jim Reid from Deutsche Bank observes that European investors are showing signs of anxiousness ahead of the FOMC meeting minutes to be published later in the US session.
Key quotes
"DB’s Joe Lavorgna expects the minutes to reveal a more hawkish side to the FOMC than has been presented from Yellen’s recent public commentary."
"Judging by the trading patterns on previous FOMC minutes days, the minutes have been a bridge between the Fed leadership and perhaps a less dovish overall Committee."
"Indeed FX strategist Alan Ruskin notes that 10y yields have gone up on ten consecutive FOMC minutes release days."
"The USD Trade-weighted index versus major currencies, has been up on 11 of the last 13 FOMC minutes release days, suggesting the bearish bias in US longer-dated yields has largely translated to a stronger USD."
"On the day of the last 8 FOMC minutes releases, the EUR has been weaker 6 times."
Key quotes
"DB’s Joe Lavorgna expects the minutes to reveal a more hawkish side to the FOMC than has been presented from Yellen’s recent public commentary."
"Judging by the trading patterns on previous FOMC minutes days, the minutes have been a bridge between the Fed leadership and perhaps a less dovish overall Committee."
"Indeed FX strategist Alan Ruskin notes that 10y yields have gone up on ten consecutive FOMC minutes release days."
"The USD Trade-weighted index versus major currencies, has been up on 11 of the last 13 FOMC minutes release days, suggesting the bearish bias in US longer-dated yields has largely translated to a stronger USD."
"On the day of the last 8 FOMC minutes releases, the EUR has been weaker 6 times."