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19 Feb 2014
Flash: GBP/USD could be aided by minutes today - Danske Bank
FXStreet (Barcelona) - Flemming Jnielsen, Senior Analyst at Danske Bank feels that ‘Minutes day’ could put focus back on the relative stance of the two likely first movers in hiking interest rates among the major central banks.
Key Quotes
“The February BoE meeting preceded last week's Inflation Report, which updated forward guidance in a more qualitative fashion, and any hints in the minutes that some members are starting to adopt a more hawkish stance and eyeing rate hikes following the rapid drop in the unemployment rate, could add to the recent GBP strength.”
“The FOMC minutes date back to the late January meeting at which the FOMC still appeared to be relatively complacent regarding the softening in data but the continued weakness in the data flow since then make the minutes a less reliable indicator of the current Fed stance; we would thus not expect a significant USD reaction on today's release.”
“There is now an increasing risk that the Fed may pause tapering later in the spring, and, if anything, the set of minutes today could add to GBP/USD upside.”
Key Quotes
“The February BoE meeting preceded last week's Inflation Report, which updated forward guidance in a more qualitative fashion, and any hints in the minutes that some members are starting to adopt a more hawkish stance and eyeing rate hikes following the rapid drop in the unemployment rate, could add to the recent GBP strength.”
“The FOMC minutes date back to the late January meeting at which the FOMC still appeared to be relatively complacent regarding the softening in data but the continued weakness in the data flow since then make the minutes a less reliable indicator of the current Fed stance; we would thus not expect a significant USD reaction on today's release.”
“There is now an increasing risk that the Fed may pause tapering later in the spring, and, if anything, the set of minutes today could add to GBP/USD upside.”