FXStreet (Edinburgh) – Lee Hardman, Currency Analyst at BTMU, sees the possibility that the Fed could support further USD-buying at its meeting on Wednesday.
Key Quotes
“We do not expect the Fed to provide a clear signal at this week’s meeting that it will begin to raise interest rates at their following meeting in September”.
“The Fed has already signalled that they expect to raise interest rates this year. The Fed is likely to reiterate that the exact timing of the first rate increase remains data dependent still leaving the door open for the first rate increase to be delivered in September”.
“The FOMC’s economic assessment is likely to be a little more upbeat signalling that it continues to move closer to delivering the first rate increase”.
“If there is no clear signal that a rate hike will be delivered in September it could prompt some initial disappointment weighing modestly on the US dollar”.
“However, the main risk is that the Fed does provide a clear signal setting up a rate hike in September providing a catalyst for further US dollar strength”.
(Market News Provided by FXstreet)