A snippet from Goldman Sachs, this via the folks at eFX
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- "Our economists do not expect the FOMC to materially revise its outlook based on the recent inflation news, both because the committee will likely view the surge in prices as transitory and because this is the conventional way developed market central banks respond to the policy tradeoffs created by a supply shock"
- "The worse-than-expected April employment report should reinforce the case for patience. With the Fed firmly on hold, we do not think higher inflation will support the Dollar, and we continue to forecast broad depreciation (with a preference for EUR/USD longs currently, given accelerating activity in the Euro area)"
Italy boss Draghi!
