24 Mar 2015
USD levels vs FOMC outlook - Nomura
FXStreet (Bali) - Nomura Research Analysts sent a note to clients about the importance of how the dollar affects the FOMC’s outlook for the economy.
Key Quotes
"If dollar appreciation is going to limit future interest rate increases, then the dollar is less likely to continue appreciating at the pace we have seen in recent months."
"On the other hand, if other factors, such as a lower natural rate of unemployment and/or slower productivity growth, account for the downward revision to the FOMC’s interest rate forecasts, then there may be greater potential for further dollar appreciation."
Key Quotes
"If dollar appreciation is going to limit future interest rate increases, then the dollar is less likely to continue appreciating at the pace we have seen in recent months."
"On the other hand, if other factors, such as a lower natural rate of unemployment and/or slower productivity growth, account for the downward revision to the FOMC’s interest rate forecasts, then there may be greater potential for further dollar appreciation."