FOMC meeting could be slightly USD negative in the short term - Phil McHugh

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Łódź) - Phil McHugh, Trade Manager at Currencies Direct, doesn’t expect much action from the July Fed monetary policy meeting, but suggests it could be slightly USD negative as the Committee disappoints the hawks.



Key quotes



“Moving forward the prospect of stronger growth and a continued improvement in labour market activity should flip the rhethoric of the FOMC and lead to a sustained move higher in the USD.”



“The USD has started to show some momentum as we head towards the FOMC meeting this week and this could be the start of a longer term rally for the USD.”



“It is likely that the Fed will want to wait and digest this week’s GDP and the non-farm payroll data.”



“The FOMC are likely to confirm that QE will end following the October meeting but this is not great surprise.”



“The key focus moving forward will remain on the health of the labour market and any signs of wage increases.”



You May Also Like

Related Forex Analysis
  1. Weekly Trading Forecast: Volatility Keeps Boiling in the FX Market
    Forex News

    Weekly Trading Forecast: Volatility Keeps Boiling in the FX Market

  2. Trading Video: Officials Trigger Volatility for Euro, Yen and Dollar
    Forex News

    Trading Video: Officials Trigger Volatility for Euro, Yen and Dollar

  3. Strategy Video: A Volatile Thanksgiving Week for FX?
    Forex News

    Strategy Video: A Volatile Thanksgiving Week for FX?

  4. US Session: The market left shell-shocked on Draghi
    Forex News

    US Session: The market left shell-shocked on Draghi

  5. EUR/USD back into the bears den, downside wide open
    Forex News

    EUR/USD back into the bears den, downside wide open

Trading Center