FOMC Meeting Minutes expectations by Barclays and September Fed hike

FOMC Meeting Minutes expectations by Barclays and September Fed hike

19 August 2015, 12:11
News
0
2 700

Barclays made a forecast for high impacted fundamental news events which will be on Wednesday at 19:00 GMT. The bank is telling that Federal Open Market Committee is already made a decision concerning a September Fed hike. Besides, Barclays is expecting the USD dollar to gain strength because "fears around China and weak commodity prices should keep pushing investors out of risky assets":

  • "We do not expect a material change and we anticipate that the document will echo the latest comments from different FOMC members. We think they will want to keep options open and will probably signal the data dependency of their decisions ahead. We believe that the FOMC has already made up their mind about their next move, absent any market disruptive events in the months ahead. Our base case remains a September Fed hike."
  • "Furthermore, we argued that the actual path of the normalization process will be more important for FX markets. The pace at which the Fed could tighten monetary conditions should depend heavily on price measures."
  • "We expect the USD to be supported in the next weeks mainly due to external factors. Fears around China and weak commodity prices should keep pushing investors out of risky assets, benefiting the USD under different scenarios."

The next FOMC Meeting Minutes will be in Oct 8, 2015 so we should really expect something important one for this release on on Wednesday at 19:00 GMT concerning September Fed hike.

Share it with friends: