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13 Mar 2015
Fed meeting-patience-June - Scotiabank
FXStreet (Guatemala) - Camilla Sutton, chief FX strategist at Scotiabank notes the forthcoming Fed meeting.
Key Quotes:
"Next week’s Fed meeting is the core near‐term focus."
"Labour markets continue to improve and core inflation has stabilized thereby meeting the economic criteria laid out by the Fed; however financial markets, namely the strength in the USD, are likely to soŌen the hawkish messaging."
"We would expect the Fed to remove ‘patience’ signally the potential of a June hike, as long as: 1) labour markets continue to improve; 2) core inflation remains stable; and 3) financial markets do not shift to extremes."
"The 6% rally in EUR since the last FOMC meeting on January 28th will be an important focus; however we expect the impact of the Fed meeting will be to support the strong USD trend, but at a more moderate pace."
Key Quotes:
"Next week’s Fed meeting is the core near‐term focus."
"Labour markets continue to improve and core inflation has stabilized thereby meeting the economic criteria laid out by the Fed; however financial markets, namely the strength in the USD, are likely to soŌen the hawkish messaging."
"We would expect the Fed to remove ‘patience’ signally the potential of a June hike, as long as: 1) labour markets continue to improve; 2) core inflation remains stable; and 3) financial markets do not shift to extremes."
"The 6% rally in EUR since the last FOMC meeting on January 28th will be an important focus; however we expect the impact of the Fed meeting will be to support the strong USD trend, but at a more moderate pace."