8 Apr 2015
FOMC Minutes: reference to USD might weigh on the currency – TDS
FXStreet (Barcelona) - Focus has remained on Fed and their view on USD, and in spite of the current dollar consolidation, any reference in the minutes regarding the currency’s strength might have negative effect on the Dollar, note FX Strategists at TD Securities.
Key Quotes
“With the run of hard data drying up temporarily after last week’s US NFP data, the Fed minutes from the March 17-18th policy meeting are the top focus for the markets in our session today. “Patience” was dropped at the March meeting and the minutes should broadly reflect the tone of Chair Yellen’s post meeting remarks where she laid out the case for a gradual tightening in monetary policy if the economic outlook holds.”
“Fed officials have stressed data dependency—both with regard to the eventual timing of “lift off” and the evolution of policy thereafter.”
“There was a fair degree of focus on the USD around the time of the March FOMC so we have to expect some discussion at least of the USD’s impact on the outlook in the minutes.”
“But as the USD rally has consolidated in the past few weeks, policy makers have appeared somewhat less concerned by the issue but headlines referring to the negative impact of the USD on growth and inflation—while essentially old news—may still weigh on the currency to an extent.”
Key Quotes
“With the run of hard data drying up temporarily after last week’s US NFP data, the Fed minutes from the March 17-18th policy meeting are the top focus for the markets in our session today. “Patience” was dropped at the March meeting and the minutes should broadly reflect the tone of Chair Yellen’s post meeting remarks where she laid out the case for a gradual tightening in monetary policy if the economic outlook holds.”
“Fed officials have stressed data dependency—both with regard to the eventual timing of “lift off” and the evolution of policy thereafter.”
“There was a fair degree of focus on the USD around the time of the March FOMC so we have to expect some discussion at least of the USD’s impact on the outlook in the minutes.”
“But as the USD rally has consolidated in the past few weeks, policy makers have appeared somewhat less concerned by the issue but headlines referring to the negative impact of the USD on growth and inflation—while essentially old news—may still weigh on the currency to an extent.”