FOMC meeting in focus – Commerzbank

FXStreet – FOMC meetings in recent years were mostly a big event for the currency market. Who sets this time to the fact that the US Central bankers can shake the USD-rates mess, however, likely to be on the wrong horse. Because of the Fed a lot of momentum for the Dollar are to be expected, Ulrich said light man, the Commerzbank expert.

Important Quotes:

The Fed was able to recently convince the market that more that you say, with a normalisation of its monetary policy seriously. By the end of 2018, approximately three rate hikes are now priced in. Obviously, the market are not approved participants of the Re-inflation marking the Story but not yet complete, the recent arg under attack. US President, Donald trump’s tax plans, so thin their content is so far and so unsure of their chances of success in Congress, to prevent the moment at least, too great a scepticism with respect to a stronger inflation in the United States and hold, the prospects of monetary policy normalization continues to be sufficiently alive. The benefit of the Greenback has so far had little, but after another crash and ensures that the Dollar Index (DXY) has stabilized in the range of 99. Against aversion to risk-prone currencies such as ZAR and MXN suffer particularly, but also Carry currencies such as the AUD. This makes the overall picture confusing.

At its meeting next week the Fed is expected to bring this new, fragile balance, hardly any mess and the USD exchange rates no new impetus. Because it is only a “small” Fed meeting, so a meeting without a press conference and projections. And the medium – to long-term Outlook still depends too much on the question of how much the fiscal stimulus fail, the U.S. government (a) and (b) by the traditionally restrictive Congress can bring. Since the FOMC with respect to the medium-term inflation Outlook is not likely to be smarter than we are, it is unlikely to want to put the signals, which has significant implications for the USD would have courses. This is likely to be that the market-are more likely to move US factors, such as the second round of the French presidential election as a USD-idiosyncratic factors. No, from the USD – side, I don’t expect it next week, too many impulses.

** FXStreet News Editorial, FXStreet**

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