FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained in respect of the FOMC coming up, given that Chinese economic slowdown is deepening rather than reversing, and with oil struggling around $30.00 a barrel, it seems that the balance will incline towards the “bad” side.
Key Quotes:
“Several times over the 2015 meetings, Janet Yellen emphasized a slow pace for rate increases, and with the afore mentioned background, the pace will likely be even slower than the optimistic 3-4 hikes a year initially expected.”
“Adding to the gloom global outlook, US data has been somehow softer during the last months, and the dollar remains strong, something that will keep the pressure over manufacturing and consumption figures.”
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“Overall that means that a dovish stance will hardly be a surprise, although the seriousness of FED’s concerns will determinate whether the dollar may fall or not.”
“Unless an unlikely shocking announcement, the reaction across the forex board is expected to be short-lived, and the market will likely resume its risk-related trading afterwards.”
(Market News Provided by FXstreet)