Goldman Sachs on what to expect at the FOMC and how it will impact EUR/USD

Author: Eamonn Sheridan | Category: News

A Goldman Sachs preview of the March Federal Reserve Federal Open Market Committee (FOMC) meeting, and how it will impact on EUR/USD

Just a quick one ...

The September and December FOMC meetings, which both weakened forward guidance, saw the Dollar rally by between 2% and 3% in subsequent weeks

We see this week's FOMC meeting, which should drop the word "patient", as another step in that process

Indeed, given that US monetary policy may revert to full data dependence, something that Chair Yellen alluded to in her Humphrey-Hawkins testimony with "meeting-by-meeting decision making", we think past price action is likely a lower bound

The normalization if US monetary policy is a powerful - if underappreciated - force for EUR/$ lower looking ahead


Lots of central bank activity coming up this week:

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