Analysts at TD Securities explained that all eyes on the FOMC Rate Decision on Wednesday.
Key Quotes:
“The improvement in financial conditions since the January FOMC meeting will be welcomed by the Fed, but there remains considerable uncertainty as to the impact on the wider economy.”
“We therefore expect the statement will note that a further increase in market volatility could lead to downside risks to the outlook.”
“While the SEP will generally be upbeat for 2016, the dot plot is expected to show a median expectation for only three hikes in 2016, but a critical mass may shift to only two. The overall tone, though nuanced, is expected to be interpreted as modestly dovish.”
(Market News Provided by FXstreet)