Mazen Issa, senior FX strategist at TD Securities, suggests that the slew of Fed speak suggests that easing is imminent, but less propensity to deliver in size.
Key Quotes
“We agree and think the Fed prefers to move in 25bp increments rather than 50bp on a per meeting basis. Suffice to say, a retracement in the scope of implied easing in the curve leaves the USD tactically vulnerable to retrace higher; but this should be viewed as positioning related rather than trend inducing.”
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