IronFX Daily Commentary by Charalambos Pissouros | 16/03/2017
March 16, 2017 10:50 am
FOMC delivers a hike, but offers no hawkish hints • FOMC hiked rates as expected. However, the signals about the rate path were not hawkish. • “Dot plot” was left unchanged, Chair Yellen was quite cautious in her press conference. • Key message: this hike doesn’t reflect increased optimism, and doesn’t imply faster future hikes. • The result was a weaker USD. Could continue lower in the next days on this Fed cautiousness.
Dutch elections: Euro gets a boost as status quo is maintained • Current PM Mark Rutte won most seats. EUR got a boost as political risks dissipated a bit. • Takes momentum away from Le Pen. EUR could stay supported for a while on this sentiment.
Bank of Japan remains on hold; Nothing new on policy • BoJ remained on hold. No new signals on policy. Reaction in JPY muted.
Today the schedule is equally busy: • UK: BoE rate decision. No action is exp. and thus, market focus will shift to the meeting minutes. We don’t expect any significant change in rhetoric. May remain somewhat dovish. Thus, if any GBP reaction, it may be negative. • Switzerland: SNB rate announcement. Exp. to stay on hold. May reiterate CHF is overvalued, but as inflation has improved, the statement may be slightly more upbeat. If so, CHF-positive. • Norway: Norges Bank policy decision. We exp. a shift to a more dovish tone, because inflation has slowed lately. May prove NOK-negative.
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FOMC delivers a hike, but offers no hawkish hints
• FOMC hiked rates as expected. However, the signals about the rate path were not hawkish.
• “Dot plot” was left unchanged, Chair Yellen was quite cautious in her press conference.
• Key message: this hike doesn’t reflect increased optimism, and doesn’t imply faster future hikes.
• The result was a weaker USD. Could continue lower in the next days on this Fed cautiousness.
Dutch elections: Euro gets a boost as status quo is maintained
• Current PM Mark Rutte won most seats. EUR got a boost as political risks dissipated a bit.
• Takes momentum away from Le Pen. EUR could stay supported for a while on this sentiment.
Bank of Japan remains on hold; Nothing new on policy
• BoJ remained on hold. No new signals on policy. Reaction in JPY muted.
Today the schedule is equally busy:
• UK: BoE rate decision. No action is exp. and thus, market focus will shift to the meeting minutes. We don’t expect any significant change in rhetoric. May remain somewhat dovish. Thus, if any GBP reaction, it may be negative.
• Switzerland: SNB rate announcement. Exp. to stay on hold. May reiterate CHF is overvalued, but as inflation has improved, the statement may be slightly more upbeat. If so, CHF-positive.
• Norway: Norges Bank policy decision. We exp. a shift to a more dovish tone, because inflation has slowed lately. May prove NOK-negative.
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To get the latest Forex trading news you should:
• Download the IronFX Research app: http://goo.gl/jhQIxO
• Like us on Facebook: https://www.facebook.com/IronFX
• Follow us on Instagram: https://www.instagram.com/ironfx
• Follow us on LinkedIn: https://goo.gl/wSEbPN
• Follow us on Twitter: https://twitter.com/IronFXGlobal
• Circle us on Google+: https://www.google.com/+Ironfxglobal
• Subscribe to our Channel: http://bit.ly/1foFmCU
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