According to analysts at TD Securities, the US Fed should signal readiness to ease policy but stop short of committing to a near term cut.
Key Quotes
“They will likely stress that they are monitoring risks on the economy and taking appropriate action to sustain the expansion.”
“We expect the median 2019 dot to remain unchanged (reflecting a Fed on-hold) and the median 2020 dot to decline.”
“FX: Stronger DXY but weaker broad USD, reflecting possible EM impact if rate cut narrative remains intact. We prefer holding short EURJPY exposure to neutralize USD direction.”
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