18 Feb 2015
Credit Suisse: What to expect from the FOMC Minutes- eFXnews
FXStreet (Barcelona) - The eFXnews Team shares Credit Suisse’s view that Fed expressing any concerns on USD strength and “currency” wars in today’s FOMC minutes might be negative for USD strength in the coming weeks.
Key Quotes
“Given the market’s interest in Fed Chair Yellen’s 24 February statement, the minutes of the 27-28 January FOMC meeting will be of great interest. Many investors will see these minutes as a draft for Yellen’s statement next week.”
“As far as FX markets are concerned, the greatest focus will be on how much discussion there was around the topic of USD strength and “currency wars.” Till now the market has assumed that the Fed has a benign view of the impact of USD strength, a view we have agreed with.”
“As such, while not our base case, excessive concerns about this issue in the minutes would be a USD negative that could shake up long USD positions further over the coming week.”
“Naturally the fact that “international developments” were noted as a factor in the 28 January FOMC statement – a change from the 17 December statement – has enhanced the risk of a more drawn out discussion of this topic in the minutes.”
Key Quotes
“Given the market’s interest in Fed Chair Yellen’s 24 February statement, the minutes of the 27-28 January FOMC meeting will be of great interest. Many investors will see these minutes as a draft for Yellen’s statement next week.”
“As far as FX markets are concerned, the greatest focus will be on how much discussion there was around the topic of USD strength and “currency wars.” Till now the market has assumed that the Fed has a benign view of the impact of USD strength, a view we have agreed with.”
“As such, while not our base case, excessive concerns about this issue in the minutes would be a USD negative that could shake up long USD positions further over the coming week.”
“Naturally the fact that “international developments” were noted as a factor in the 28 January FOMC statement – a change from the 17 December statement – has enhanced the risk of a more drawn out discussion of this topic in the minutes.”