Fed Hikes To Remain Gradual; Evans’ Dissent A Dovish Surprise – Barclays

0

The dollar was already suffering from the weak inflation report and was downed by the Fed. What’s next for the central bank and the greenback? Here is the view from Barclays.

Here is their view, courtesy of eFXnews:

Barclays Capital Research discusses the reaction to today’s FOMC decision.

At its December meeting, the Federal Open Market Committee (FOMC) raised the target range for the federal funds rate by 25bp to 1.25-1.5%, a move that was in line with our expectation and widely anticipated by markets heading into the meeting. The committee made only modest changes to the FOMC statement, the most notable of which was an upgrade in the description of the pace of job gains to “solid” whereas the committee saw prior employment as restrained by the hurricanes.

…Also notable to us was the two dissents, one from Chicago Fed President Evans and the other from Minneapolis Fed President Kashkari. Kashkari’s dissent was in line with our expectation, given that he dissented against a rate increase in June. Evans was a surprise to us as he generally prefers to avoid dissents in favor of active discussion at the table during the meeting itself,” Barclays argues.

For lots more FX trades from major banks, sign up to eFXplus

By signing up to eFXplus via the link above, you are directly supporting Forex Crunch.

Get the 5 most predictable currency pairs

About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

Comments are closed.