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21 Aug 2014
USD benefited by FOMC minutes – Danske Bank
FXStreet (Edinburgh) - Flemming Nielsen, Senior Analyst at Danske Bank, underlines the positive tone from the greenback post-FOMC minutes.
Key Quotes
“The minutes from the 29-30 July Fed meeting turned out to be a bit more hawkish than the statement from the meeting, see Fed Minutes and Wall Street Journal”.
“At the meeting a significant minority argued that in light of the faster-than-expected decline in unemployment and more balanced inflation risks, conditions were already right for the Fed to change its forward guidance (rates to stay low for ‘a considerable time after the asset purchase programme ends’) and signal an earlier interest rate increase”.
“However, the majority remained more cautious, arguing that more time was needed to evaluate the strength of the recovery, but it also acknowledged that the forward guidance would have to be changed if the labour market continues to improve faster than expected”.
Key Quotes
“The minutes from the 29-30 July Fed meeting turned out to be a bit more hawkish than the statement from the meeting, see Fed Minutes and Wall Street Journal”.
“At the meeting a significant minority argued that in light of the faster-than-expected decline in unemployment and more balanced inflation risks, conditions were already right for the Fed to change its forward guidance (rates to stay low for ‘a considerable time after the asset purchase programme ends’) and signal an earlier interest rate increase”.
“However, the majority remained more cautious, arguing that more time was needed to evaluate the strength of the recovery, but it also acknowledged that the forward guidance would have to be changed if the labour market continues to improve faster than expected”.