Limited USD response to Fed decision expected - Scotiabank

FXStreet (Córdoba) - Heading into the Federal Reserve verdict, Shaun Osborne, Chief FX Strategist at Scotiabank notes that no one expects the Fed to raise rates today and investors are perhaps low-balling the risk of a move, just because there is no press conference scheduled.

Key Quotes

“Looking ahead to the Fed, no one expects a move today; the vast majority of Fed policymakers have indicated in the past few weeks that rates will rise before year-end so investors are perhaps low-balling the risk of a move, just because there is no press conference scheduled”.

“We prefer long USD positions versus the majors and zero expectation of a move today should mean a limited USD response to confirmation that rates remain on hold”.

“We prefer long USD positions versus the EUR and CAD specifically and think modest USD dips near-term are a buy”.