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17 Mar 2015
FOMC: Breathing space in path for tightening - Scotiabank
FXStreet (Guatemala) - Eric Theoret, currency strategist at Scotiabank explained that the tone shifts among the G4 central banks and implications for the Fed.
Key Quotes:
"The overnight statement from the BoJ saw a shift in tone toward the outlook for inflation, softening expectations for the near term path in light of energy prices while reinforcing confidence in policymakers’ ability to achieve their target."
"The tone was similar to that conveyed in last week’s comments from BoE Gov. Carney and MPC member Weale, as both highlighted the impact of global developments on the outlook for domestic inflation, providing ‘breathing space’ in the path for tightening."
"Weakened energy prices, soft global inflation and the added disinflationary pressure of a strong USD — with the DXY up nearly 6% since the Jan 28 FOMC, are all factors that are likely weigh on the FOMC as they consider the outlook for data-dependent policy normalization."
Key Quotes:
"The overnight statement from the BoJ saw a shift in tone toward the outlook for inflation, softening expectations for the near term path in light of energy prices while reinforcing confidence in policymakers’ ability to achieve their target."
"The tone was similar to that conveyed in last week’s comments from BoE Gov. Carney and MPC member Weale, as both highlighted the impact of global developments on the outlook for domestic inflation, providing ‘breathing space’ in the path for tightening."
"Weakened energy prices, soft global inflation and the added disinflationary pressure of a strong USD — with the DXY up nearly 6% since the Jan 28 FOMC, are all factors that are likely weigh on the FOMC as they consider the outlook for data-dependent policy normalization."