A dovish Fed meeting and a reminder that the FOMC will take firm action to support the economy and financial system appear well in the price, economists at TD Securities apprise.
Key quotes
“Lending programs are the main focus now and will probably be modified further in the weeks ahead, but we are not expecting any major announcements at the upcoming meeting. The tone will almost certainly remain dovish, however.”
“The USD is likely to take its cue from risk assets, where US markets remain a flow magnet and have largely outperformed its peers on a stock-to-bond ratio basis.”
“With the ECB meeting a day later and EUR tactically vulnerable, the USD’s safe-haven properties should be reinforced.”
Share
