Look for a dovish Fed
From Morgan Stanley:
"’.
The Fed should provide us with some dovish sound bites and may even
cite international uncertainties to highlight the economic damage provided by a
stronger USD. In order to have a meaningful impact on markets, the Fed has to
‘jump ahead of the curve
The curve is defined by current market pricing for rate expectations. Jumping
ahead of the curve would require the Fed to signal a long rate hike pause. Any
other rhetoric would only ‘mark to market’ the Fed’s own projections closer
towards current market pricings, which would be insufficient to prevent the USD
from rising," MS argues.
