Views from 15 banks on what the FOMC will do
Here are snippets from 15 banks on what they expect from Janet Yellen and the Federal Reserve today.
BNPP (out-of-consensus): FOMC To Announce A Dovish Hike; Mkt Short USD Into FOMC
, cushioning its delivery with reassurances about gradual tightening going forward. However, even a ‘dovish’ hike would show the market that the Fed are willing to tighten even when very little is priced in and hence the premium attached to all upcoming meetings would need to re-price higher. If the Fed does elect to leave policy unchanged, the USD is likely to take a leg lower with AUDUSD attempting to test 0.7650 and EURUSD 1.1250. However, we would expect the accompanying message to keep a December hike in play (currently priced at 55%%) and hence we would not expect the USD sell-off to extend too far after the initial adjustment.
