FOMC: Dot projections in the spotlight - ING
|According to analysts at ING, as the FOMC meets later today, investors are bracing for a dovish shift in the monetary stance.
Key Quotes
“The policy rate is widely expected to be kept on hold for now, so the focus will be on forward-looking indicators such as the dot projections. Every three months, FOMC members anonymously submit their forecasts about where they think the rates will be after three years. The median value of the projections is highly regarded by market participants as a tool to assess the timing and magnitude of the Fed’s monetary policy changes.”
“Given the aggressive market pricing for rate cuts in the last few months, dot projections will likely be the key variable in the markets’ reaction function.”
“Our economists believe the adjustment in the dots may signal that FOMC members expect two of the four cuts priced by the market for end of 2020. All things considered, we expect USD to be under pressure across the board today, with NOK possibly standing out as the key outperformer.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.