8 Dec 2014
FOMC meeting next week, USD looks for more strength – DBS
FXStreet (Barcelona) - The DBS Research Team notes that the Fed should acknowledge the improvement in US economy and signal for a rate hike for the US in the upcoming FOMC meeting next week.
Key Quotes
“The US dollar should be looking to next week’s FOMC meeting on 16-17 Dec to extend its appreciation. Last Friday, US nonfarm payrolls data came in at a whopping 321K in Nov14 vs the 230K consensus. This is seen opening the door for the Fed to drop the consider dropping the term “considerable period” from its FOMC statement.”
“Cleveland Fed President Loretta Mester, who leads the communications subcommittee in the Fed, believes that the FOMC statement needs to acknowledge the improvements in the US economy and signal that US rate hikes are coming.”
“Fed Chair Janet Yellen will probably present a more upbeat assessment for the US economy during her post-FOMC press conference. Fed Vice Chairman Stanley Fischer and the White House Council for Economic Adviser Chairman Jason Furman have already conveyed that lower oil prices should be viewed a tax cut for consumers, and hence, net positive for the US economy. According to Furman, every $8-10 drop in the oil price adds 0.1% to growth.”
Key Quotes
“The US dollar should be looking to next week’s FOMC meeting on 16-17 Dec to extend its appreciation. Last Friday, US nonfarm payrolls data came in at a whopping 321K in Nov14 vs the 230K consensus. This is seen opening the door for the Fed to drop the consider dropping the term “considerable period” from its FOMC statement.”
“Cleveland Fed President Loretta Mester, who leads the communications subcommittee in the Fed, believes that the FOMC statement needs to acknowledge the improvements in the US economy and signal that US rate hikes are coming.”
“Fed Chair Janet Yellen will probably present a more upbeat assessment for the US economy during her post-FOMC press conference. Fed Vice Chairman Stanley Fischer and the White House Council for Economic Adviser Chairman Jason Furman have already conveyed that lower oil prices should be viewed a tax cut for consumers, and hence, net positive for the US economy. According to Furman, every $8-10 drop in the oil price adds 0.1% to growth.”