Fed unlikely to risk tightening too much, too quickly – Danske Bank

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 27, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Delhi) – Research Team at Danske Bank, suggests that the key event today will be the FOMC meeting.

    Key Quotes

    “We expect the Fed to keep the federal funds rate target unchanged at 0.25-0.50% but focus will be on the accompanying statement. We stress that we expect the Fed to make an attempt to be dovish by communicating implicitly that it will skip March as a possible hiking month and remain on hold in the current environment. Indeed, the Fed will not risk tightening too much but it will be a challenge to not disappoint with markets pricing only one full hike this year.”
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