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9 Apr 2015
USD boosted post FOMC Minutes, June or September favoured for hike – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team comments on the rate hike expectations post the release of the FOMC Minutes, and on Fed official’s view on the Dollar.
Key Quotes
“The US dollar is broadly higher on follow through buying after recovering in North America yesterday, helped in part by the FOMC minutes. The minutes suggested a greater risk of a June or even a September hike than many investors seem to appreciate.”
“The December Fed funds futures contract, for example, has nearly unwound the move spurred by the disappointing jobs data at the end of last week.”
“The FOMC minutes shed some light on the role of the dollar. Its strength was a reason for some cutting the long-term growth forecasts, and by implication the lower level of Fed funds in 2017.”
“On the other hand, it is noteworthy that the stabilization of the dollar was cited as a factor that would help boost confidence that price pressures would move toward the Fed's target.”
Key Quotes
“The US dollar is broadly higher on follow through buying after recovering in North America yesterday, helped in part by the FOMC minutes. The minutes suggested a greater risk of a June or even a September hike than many investors seem to appreciate.”
“The December Fed funds futures contract, for example, has nearly unwound the move spurred by the disappointing jobs data at the end of last week.”
“The FOMC minutes shed some light on the role of the dollar. Its strength was a reason for some cutting the long-term growth forecasts, and by implication the lower level of Fed funds in 2017.”
“On the other hand, it is noteworthy that the stabilization of the dollar was cited as a factor that would help boost confidence that price pressures would move toward the Fed's target.”