16 Jun 2015
USD cautious ahead of FOMC – BTMU
FXStreet (Barcelona) - Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, sees scope for USD strength if the FOMC doesn’t surprise with a dovish tone.
Key Quotes
“The US dollar is trading cautiously ahead of tomorrow’s FOMC meeting reflecting the risk that the Fed may signal a more gradual pace of tightening ahead. Recent Fed commentary has displayed more caution over the scale of the expected economic rebound, although more evidence of stronger economic and wage growth is now beginning to emerge.”
“Short-term yield spreads have recently been moving in the US dollar’s favour as Fed rate hike expectations have picked up. However, the developments have not yet resulted in a stronger US dollar. Assuming that there is no major dovish surprise from the Fed tomorrow, there would appear some scope for catch up US dollar strength.”
Key Quotes
“The US dollar is trading cautiously ahead of tomorrow’s FOMC meeting reflecting the risk that the Fed may signal a more gradual pace of tightening ahead. Recent Fed commentary has displayed more caution over the scale of the expected economic rebound, although more evidence of stronger economic and wage growth is now beginning to emerge.”
“Short-term yield spreads have recently been moving in the US dollar’s favour as Fed rate hike expectations have picked up. However, the developments have not yet resulted in a stronger US dollar. Assuming that there is no major dovish surprise from the Fed tomorrow, there would appear some scope for catch up US dollar strength.”