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Previewing next weeks FOMC meeting, “the funds rate will almost certainly be left unchanged. Tweaks to the FOMC statement are likely to be minor,” said TD Securities analysts.

Key quotes

“Policy will likely still described as “appropriate” but with officials also still in “monitor[ing]” mode, consistent with an easing bias. The separate implementation note will likely include a 5bp rise in the IOER, with the change downplayed as just a technical adjustment.”

“Fed meeting should still leave the USD the best of a bad lot but within tolerable ranges. EURUSD lacks a directional macro impulse to offset negative carry dynamics.”

“Tactically, we remain comfortable with our USDCAD long and bias for USDJPY to correct lower as its move to 110 was without merit.”