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20 May 2015
Fed, BoE minutes eyed - RBS
FXStreet (Bali) - Brian Daingerfield, FX Trading Strategist at RBS, shares his insights on the upcoming Federal Reserve and Bank of England minutes from their latest meetings, due to be published later on Wednesday.
Key Quotes
"The Federal Reserve and the Bank of England are each due to release minutes from their latest meetings. The BoE minutes may prove to be largely a non-event, as the Quarterly Inflation Report released last week covers in great detail the conclusions from the MPC meeting. The Fed minutes should bring considerable interest."
"The minutes, along with the statement and recent Fed-speak, may prove to be frustratingly vague on the committeee’s view of the timing of the first rate hike, noting that it simply depends on the data. The statement downgraded language on the labour market but added that the weakness seen in the first quarter was likely transitory. The FOMC continues to expect that economic growth will rebound in the second quarter but that the confidence in that view may have retreated somewhat."
"As that stance is consistent with recent comments from Fed members, a sharp market reaction may be unlikely. While the commentary may lean dovish, perhaps reflecting lessened confidence in the spring rebound, the fact that the Fed still sees itself on pace to hike in 2015 may prove to be a positive for the USD."
Key Quotes
"The Federal Reserve and the Bank of England are each due to release minutes from their latest meetings. The BoE minutes may prove to be largely a non-event, as the Quarterly Inflation Report released last week covers in great detail the conclusions from the MPC meeting. The Fed minutes should bring considerable interest."
"The minutes, along with the statement and recent Fed-speak, may prove to be frustratingly vague on the committeee’s view of the timing of the first rate hike, noting that it simply depends on the data. The statement downgraded language on the labour market but added that the weakness seen in the first quarter was likely transitory. The FOMC continues to expect that economic growth will rebound in the second quarter but that the confidence in that view may have retreated somewhat."
"As that stance is consistent with recent comments from Fed members, a sharp market reaction may be unlikely. While the commentary may lean dovish, perhaps reflecting lessened confidence in the spring rebound, the fact that the Fed still sees itself on pace to hike in 2015 may prove to be a positive for the USD."