FXStreet (Edinburgh) – In the opinion of analysts at BAML, the Committee’s statement could lean towards the hawkish side today.
Key Quotes
“We don’t expect any explicit changes to the July FOMC policy language to signal something about the timing of liftoff”.
“Rather, markets will have to infer the Fed’s plans from the assessment of the recent data and the outlook in the July postmeeting statement”.
“In accordance with a data-dependent approach, this should be the main way the Fed will communicate the chances for liftoff at upcoming meetings”.
“With the data somewhat more mixed since June, we expect a cautiously optimistic if noncommittal message”.
“This may be slightly more hawkish than current market expectations (which place the probability of a September hike in the vicinity of 40%), but not a strong enough signal to trigger a major repricing in our view”.
(Market News Provided by FXstreet)