FXStreet (Guatemala) – Analysts at TD Securities noted key events taking place next week from the Fed, RBA and BoJ.
Key Quotes:
“FOMC Decision (Wed 17 June): The June FOMC meeting keeps the dream alive, the July meeting is best viewed as a set up for higher rates, and then September as follow-through. That view should be reinforced by the meeting next week. As for the dots, the big question is whether the 2015 dot, currently nestled at 0.625% (two rate hikes) will shift lower – we think that it’s possible, but not probable.
RBA June Minutes (Tues 16 June): Leaving the cash rate at 2% was not controversial, but not leaving any forward guidance was. At the time there were widespread expectations for a mild easing bias, but that wasn’t voiced until the RBA Governor’s speech earlier this past week with “We remain open to the possibility of further policy easing, if that is, on balance, beneficial for sustainable growth.”
BOJ Decision (Fri 19 June): We seem to have had an open divide develop over the last week between some members of the government and central bank regarding USDJPY. Risks of easing seem to have dissipated at this stage, even if meeting the inflation target is likely going to require it at some stage. But this meeting will hinge on Kuroda’s comments on JPY and whether 125 is meant to be the line in the sand. We think that upward momentum may be diminishing for USDJPY and look for spot to enter a more consolidative phase in the weeks ahead.”
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