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31 Oct 2013
Flash: FOMC statement hawkish although caution alert - Rabobank
FXstreet.com (London) - Analysts at Rabobank said yesterday’s FOMC decision also held few surprises and we have kept our view that tapering will start in March 2014 at the earliest, unaltered.
Key Quotes:
“The most significant change in the statement was that the Fed dropped its concerns about the impact of tighter financial conditions on the recovery pace”.
“The market reaction to the FOMC decision was relatively muted although a strengthening of the dollar on the news (EUR/USD briefly dipped below the 1.37 handle) indicates that currency markets saw the statement as having a hawkish slant”.
“As delayed Fed tapering has now become the consensus view, weaker-than-expected future data releases may pose a risk to market sentiment”.
Key Quotes:
“The most significant change in the statement was that the Fed dropped its concerns about the impact of tighter financial conditions on the recovery pace”.
“The market reaction to the FOMC decision was relatively muted although a strengthening of the dollar on the news (EUR/USD briefly dipped below the 1.37 handle) indicates that currency markets saw the statement as having a hawkish slant”.
“As delayed Fed tapering has now become the consensus view, weaker-than-expected future data releases may pose a risk to market sentiment”.