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18 Sep 2015
Dovish delay from the Fed but liftoff still on the table - Nomura
FXStreet (Delhi) - Jens Nordvig, Research Analyst at Nomura, suggests that the Fed delayed liftoff at the September meeting and press conference had some dovish elements but its still on the table for 2015.
Key Quotes
“There were a few passages of caution in the statement, both on inflation and on foreign developments, and the dots suggest that a number of the FOMC participants that make up the core consensus group now anticipate a slower pace of tightening (less than 4 hikes).”
“On this basis, liftoff by December should probably be priced with more than 50% probability. We still believe that our 1.10 year-end target for EURUSD is likely to be achieved under the assumption that the Fed is able to raise rates by the December meeting, which seems fairly likely.”
Key Quotes
“There were a few passages of caution in the statement, both on inflation and on foreign developments, and the dots suggest that a number of the FOMC participants that make up the core consensus group now anticipate a slower pace of tightening (less than 4 hikes).”
“On this basis, liftoff by December should probably be priced with more than 50% probability. We still believe that our 1.10 year-end target for EURUSD is likely to be achieved under the assumption that the Fed is able to raise rates by the December meeting, which seems fairly likely.”