7 Apr 2015
Dovish Fed minutes to support Yen – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, expects tomorrow’s FOMC Minutes to re-enforce the dovish sentiments surrounding US rate hikes, and push down US treasury yields, thereby supporting a strong JPY.
Key Quotes
“The Fed minutes for the March policy meeting slated to release tomorrow are likely to re-enforce expectations of a delay in the interest rate hike in the US. It is worth noting that we have had a surprisingly weak NFP report after the release of an equally surprising dovish Fed statement in March.”
“Downward revision of interest rate forecasts, downward revision of growth and inflation forecasts, along with concerns regarding a strong USD were the dominant features of the policy statement.”
“The Fed minutes are likely to erase any little speculation of an interest rate hike in June. Moreover, the dovish tone of the minutes would be read along with a weak March NFP and slow down in the first quarter.”
“Thus, I expect the minutes to push down the long-end as well as the short-end treasury yields, which would be Yen supportive.”
Key Quotes
“The Fed minutes for the March policy meeting slated to release tomorrow are likely to re-enforce expectations of a delay in the interest rate hike in the US. It is worth noting that we have had a surprisingly weak NFP report after the release of an equally surprising dovish Fed statement in March.”
“Downward revision of interest rate forecasts, downward revision of growth and inflation forecasts, along with concerns regarding a strong USD were the dominant features of the policy statement.”
“The Fed minutes are likely to erase any little speculation of an interest rate hike in June. Moreover, the dovish tone of the minutes would be read along with a weak March NFP and slow down in the first quarter.”
“Thus, I expect the minutes to push down the long-end as well as the short-end treasury yields, which would be Yen supportive.”