FOMC meeting could be slightly USD negative in the short term - Phil McHugh

FXStreet (Łódź) - Phil McHugh, Trade Manager at Currencies Direct, doesn’t expect much action from the July Fed monetary policy meeting, but suggests it could be slightly USD negative as the Committee disappoints the hawks.

Key quotes

“Moving forward the prospect of stronger growth and a continued improvement in labour market activity should flip the rhethoric of the FOMC and lead to a sustained move higher in the USD.”

“The USD has started to show some momentum as we head towards the FOMC meeting this week and this could be the start of a longer term rally for the USD.”

“It is likely that the Fed will want to wait and digest this week’s GDP and the non-farm payroll data.”

“The FOMC are likely to confirm that QE will end following the October meeting but this is not great surprise.”

“The key focus moving forward will remain on the health of the labour market and any signs of wage increases.”