7 Aug 2015
FOMC minutes could be USD-supportive – TDS
FXStreet (Edinburgh) - Strategists at TD Securities believe the greenback could find extra support in the upcoming FOMC minutes.
Key Quotes
“The minutes of the July FOMC meeting will be of particular interest to markets as investors try to handicap the prospect of a September hike”.
“The tone of the discussion around the outlook for labor market activity and the associated benchmark(s) for determining whether the threshold of “some further improvement in the labor market” has been met to justify a lift off in rates are both key factors”.
“We expect this report to reinforce the Fed’s prevailing bias for a September start to the normalization in rates and signal a shift in the monetary policy bias in a hawkish direction”.
“While the minutes will likely reiterate the data-dependency of any policy action, the market will be particularly sensitive to any signal that the timing of lift-off may be near”.
“In that regard, our expectation for a relatively hawkish tone should go a long way in corralling the market expectation towards a September hike. Other considerations for the market will be the deliberations on the operational mechanics for lift-off, which should be finalised at this meeting”.
Key Quotes
“The minutes of the July FOMC meeting will be of particular interest to markets as investors try to handicap the prospect of a September hike”.
“The tone of the discussion around the outlook for labor market activity and the associated benchmark(s) for determining whether the threshold of “some further improvement in the labor market” has been met to justify a lift off in rates are both key factors”.
“We expect this report to reinforce the Fed’s prevailing bias for a September start to the normalization in rates and signal a shift in the monetary policy bias in a hawkish direction”.
“While the minutes will likely reiterate the data-dependency of any policy action, the market will be particularly sensitive to any signal that the timing of lift-off may be near”.
“In that regard, our expectation for a relatively hawkish tone should go a long way in corralling the market expectation towards a September hike. Other considerations for the market will be the deliberations on the operational mechanics for lift-off, which should be finalised at this meeting”.