20 Mar 2015
Policy will be data dependant - ING
FXStreet (Guatemala) - Analysts at ING bank explained that with the Fed having removed “patient” from its FOMC statement, it is now indicating that policy will very much be data dependent.
Key Quotes:
"Financial markets will therefore be focused on this week’s US inflation numbers. The Fed made it clear that it wants to see ongoing improvements in the labour market and wants to be “reasonably confident” that inflation will return to target."
"However, we think that annual CPI inflation will remain in negative territory despite the recent increase in gasoline prices. Any downside surprises will hurt the dollar and see bond yields fall further."
"Meanwhile, housing numbers are set to remain subdued given bad weather will have deterred purchases while durable goods orders are expected to stabilise after a couple of months of volatility."
"There are also numerous Federal Reserve officials speaking so we will get a better flavour of the debate going on within the FOMC."
Key Quotes:
"Financial markets will therefore be focused on this week’s US inflation numbers. The Fed made it clear that it wants to see ongoing improvements in the labour market and wants to be “reasonably confident” that inflation will return to target."
"However, we think that annual CPI inflation will remain in negative territory despite the recent increase in gasoline prices. Any downside surprises will hurt the dollar and see bond yields fall further."
"Meanwhile, housing numbers are set to remain subdued given bad weather will have deterred purchases while durable goods orders are expected to stabilise after a couple of months of volatility."
"There are also numerous Federal Reserve officials speaking so we will get a better flavour of the debate going on within the FOMC."