The FOMC meeting minutes were slightly dovish, sending USD/JPY to the lowest in two months. What does it mean for policy? Here is the view from SEB:
Here is their view, courtesy of eFXnews:
SEB FX Strategy Research comments on today’s FOMC minutes from the November meeting.
“…Summarising our take on today’s minutes, we continue to expect that the Fed will deliver another rate hike in December.However, it is obvious that FOMC officials are divided in their view on inflation.
Although the Fed is unlikely to back out of a hike at the December meeting, there are clearly a lot of worries among officials about inflation weakness. This suggests that the Fed might put the first hike in 2018 on hold until there are more signs that price gains are picking up.
We stick to our view that there will be three rate hikes in 2018 and expect the Fed to raise rates in June, September and December,’ SEB argues.
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