29 Apr 2015
FOMC: One page statement limits market impact - Westpac
FXStreet (Bali) - Sean Callow, FX Strategist at Westpac, notes that the FOMC meeting concludes with a one page statement only, no updated forecasts or press conference, limiting the potential market impact.
Key Quotes
"The FOMC meeting concludes with a one page statement only, no updated forecasts or press conference, limiting the potential market impact. Much of the statement should be unchanged from 18 March but obviously the reference to a rate hike being “unlikely at the April meeting” needs to be either changed to refer to June or adjusted to remove references to dates."
"The latter seems more likely. The text should acknowledge the weakness of the economy in Q1 but surely will include optimism that much of the weakness is due to temporary factors such as the harsh winter and west coast ports strike. USD might see some demand given the extent of recent weakness but overall the combination of GDP and a wary Fed shouldn’t be too helpful for the dollar."
Key Quotes
"The FOMC meeting concludes with a one page statement only, no updated forecasts or press conference, limiting the potential market impact. Much of the statement should be unchanged from 18 March but obviously the reference to a rate hike being “unlikely at the April meeting” needs to be either changed to refer to June or adjusted to remove references to dates."
"The latter seems more likely. The text should acknowledge the weakness of the economy in Q1 but surely will include optimism that much of the weakness is due to temporary factors such as the harsh winter and west coast ports strike. USD might see some demand given the extent of recent weakness but overall the combination of GDP and a wary Fed shouldn’t be too helpful for the dollar."