Yellen needs to avoid “lift of in July” – BNP

FXStreet (Guatemala) – Analysts at BNP Paribas noted the FOMC coming up and commented with their thoughts.

Key Quotes:

“We expect today’s FOMC statement to acknowledge improvement in key data after transitory factors suppressing Q1 activity abated. In the subsequent press conference, Chair Yellen will likely continue to emphasize that rate hikes are likely coming at some point later this year. However, the meeting may not provide a decisive catalyst for the US currency. Our economists note that the FOMC’s projection ‘dots’ are likely to shift in a dovish direction as the more hawkish members acknowledge that tightening will not begin in mid-2015.”

“The Committee and Chair Yellen will also need to explain its decision to leave rates unchanged now and be sure to avoid signalling lift off at the July meeting. Rate markets remain underpriced relative to our expectation for tightening to begin in September but we may need to wait for more economic data and subsequent Fed communications before we see an adjustment to our view.”

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Analysts at BNP Paribas noted the FOMC coming up and commented with their thoughts.

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