18 Jun 2014
What to expect from FOMC? - RBS
FXStreet (Guatemala) - RBS strategists noted the FOMC decision is immediately ahead.
Key Quotes:
“In short, it is difficult for the Fed to become more credibly dovish than they already are amid a faster than expected decline in the unemployment rate and the uptick in the core PCE deflator, so the risks likely lean toward a more hawkish result”.
“Like the Bank of England, which faced credibility issues (and GBP strength) long before Governor Carney signaled the hawkish change in guidance last week, even if the FOMC message today remains dovish (which we expect) the markets may use USD weakness to position for an eventual shift in tone”.
Key Quotes:
“In short, it is difficult for the Fed to become more credibly dovish than they already are amid a faster than expected decline in the unemployment rate and the uptick in the core PCE deflator, so the risks likely lean toward a more hawkish result”.
“Like the Bank of England, which faced credibility issues (and GBP strength) long before Governor Carney signaled the hawkish change in guidance last week, even if the FOMC message today remains dovish (which we expect) the markets may use USD weakness to position for an eventual shift in tone”.