USD Into FOMC: Positive On Low Risk Of Dots Downgrade

The Federal Reserve convenes amid a snowstorm in Washington. Will we also see a snowstorm in markets? The team at Nomura sees a positive outcome and details the keys for the shake in markets:

Here is their view, courtesy of eFXnews:

The USD has gained back some momentum ahead of tomorrow’s FOMC meeting.

In that regard, Nomura Research notes that the market has already priced the likelihood of a March rate hike well, but an earlier hike may improve market confidence in the Fed and its dots.

“Into coming FOMC meetings, the risk of the dots being downgraded is clearly lower, which should be USD positive,” Nomura argues.