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28 Jan 2015
Fed unlikely to surprise, USD should nudge up – TDS
FXStreet (Barcelona) - Shaun Osborne, Chief FX Strategist at TD Securities, expects today’s Fed statement might be limited to minor tweaks in its forward guidance, further expecting USD to recover on a positive tone of the meeting.
Key Quotes
“With a couple of central bank shockers in the recent past, markets are clearly a little apprehensive ahead of today’s FOMC meeting. There is no press conference to follow and no forecast updates so scope for surprises here should be fairly limited to tweaks in the language which reflect the Fed’s gradual progression to policy normalization.”
“We look for the USD to recover a little ground at least on a generally positive statement though we also think risks are skewed to a bigger, negative USD reaction in the event of a more dovish-sounding statement, considering market positioning and the USD’s broadly overbought condition.”
Key Quotes
“With a couple of central bank shockers in the recent past, markets are clearly a little apprehensive ahead of today’s FOMC meeting. There is no press conference to follow and no forecast updates so scope for surprises here should be fairly limited to tweaks in the language which reflect the Fed’s gradual progression to policy normalization.”
“We look for the USD to recover a little ground at least on a generally positive statement though we also think risks are skewed to a bigger, negative USD reaction in the event of a more dovish-sounding statement, considering market positioning and the USD’s broadly overbought condition.”