FXStreet (Barcelona) – The Westpac Global Strategy Group notes that the FOMC minutes were mostly upbeat on the domestic economy but showed signs of caution over Greece, China and the strong USD.
Key Quotes
“The FOMC minutes were fairly upbeat on the US economy but noted concerns about spillover effects from Greece on the US and growth in China. We still see the FOMC as wishing to begin the normalisation process soon, though the minutes suggest they are held back by some domestic disappointment including increasing concern on the lack of pass-through from real wages, confidence and wealth to discretionary spendin. There were also signs of caution around the strong US dollar. Markets reacted by trimming pricing of hikes across the curve.”
“Chair Yellen’s speech this Friday and Semi Annual testimony to the House and Senate next week will thus be key updates given the recent adverse developments in China and Greece.”
“Fedspeak from Williams (centrist and voter) was positive on the domestic economy and downplayed international risks.”
(Market News Provided by FXstreet)