FOMC minutes to dominate – RBC CM

With little in the way of key data, the minutes of the June 14 FOMC meeting dominate the next 24 hours, suggests the analysis team at RBC Capital Markets.

Key Quotes

“At that meeting, the Fed raised the Funds target band by 25bp and gave some detail on the likely path of balance sheet reduction. Attention is likely to focus on the latter and any additional detail on the reasoning behind the very slow pace of tapering.  Expect the minutes to further underline the message that balance sheet reduction is not seen as a substitute for higher rates, which would be positive-USD (as was the announcement on the day of the meeting).”