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26 Feb 2014
Flash: USD’s soggy tone to remain - Rabobank
FXStreet (Guatemala) - Jane Foley, Senior Currency Strategist at Rabobank explained that although Yellen appears to have appeased the G20 about how the Fed’s responsibility to the wider global economy when taking its policy decisions, there is little in the Fed’s official commentary to illustrate that this is a concern.
Key Quotes:
“The communiqué that followed the weekend’s G20 meeting contained the statement that “all our central banks maintain that monetary policy settings will continue to be carefully calibrated and clearly communicated in the context of ongoing exchanges of information and being mindful of the impacts on the global economy””.
“The statement was followed by comments from Australian Treasurer Hockey that Yellen was impressive in dealing with the concerns about the impact on the global economy from the Fed’s tapering policy”.
“The combination of weaker US data and concerns about growth in emerging market all suggest that the Fed will continue to make dovish pledged on rates. The implication is that the USD’s soggy tone could remain in place for the time being”.
Key Quotes:
“The communiqué that followed the weekend’s G20 meeting contained the statement that “all our central banks maintain that monetary policy settings will continue to be carefully calibrated and clearly communicated in the context of ongoing exchanges of information and being mindful of the impacts on the global economy””.
“The statement was followed by comments from Australian Treasurer Hockey that Yellen was impressive in dealing with the concerns about the impact on the global economy from the Fed’s tapering policy”.
“The combination of weaker US data and concerns about growth in emerging market all suggest that the Fed will continue to make dovish pledged on rates. The implication is that the USD’s soggy tone could remain in place for the time being”.