USD: Risks skewed to downside depending on Fed’s forward guidance – BofA
16.09.2020, 06:39

USD: Risks skewed to downside depending on Fed’s forward guidance – BofA

FXStreet reports that analysts at Bank of America (BofA) believe that the Fed monetary policy decision is unlikely to have a significant impact on the FX market.

"We expect the Fed to take the first step in shifting from stabilization to accommodative policies at the upcoming meeting. This will likely take the form of stronger forward guidance, linking the ZLB to an inflation overshoot.

“We also expect the Fed to tweak the statement to tie the balance sheet policy to support the economy rather than market stabilization.“

"The US rates market will be most focused on changes to forward guidance and any balance sheet adjustments. We see risk the rates market is underwhelmed by the guidance provided by the Fed, which would support higher back-end rates and a steeper curve. “

“We anticipate a subdued reaction in the FX market, with risks somewhat skewed USD-negative on the day depending on forward guidance language." 

© 2000-2020. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Feedback
Live Chat E-mail
Up
Choose your language / location