USD: April FOMC: Too Soon For The T Word; Biased For USD/JPY Downside – TD

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Ahead of today’s FOMC policy meeting, what is the outlook for USD/JPY?

TD Research discusses its expectations for [today’s] FOMC policy meeting.

We don’t expect any substantive new signal yet on tapering—or tightening—even as the tone on the economy is more positive than in March. We expect the signaling to evolve over time as the recovery proceeds, and we just changed our forecast for the start of tapering to March 2022 from September 2022,” TD notes.

In the absence of a major catalyst—fixed income or otherwise—technicals, positioning and 10yr TIPS has us biased to USDJPY downside ahead of the meeting,” TD adds.

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