Analysts at BBH point out that NY Fed President Dudley, who will retire in the middle of the year, offered a particularly hawkish outlook yesterday. However, it was not hawkish enough to counter market perceptions of the ECB's stance, they further add.
“Dudley argued that the low present reading of inflation is offset by the outlook for continued above trend growth, the accommodative money supply growth and easy financial conditions, and the expansive fiscal policy. He warned of risks of the economy overheating in the next few years. At the start of last week, the market had discounted a little more than a 2/3 chance of a hike in March. Now it is closer to 82%, but little change on Dudley's remarks.”
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 securities. 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 Forex 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.