Standard Chartered says the Federal Reserve FOMC will take the opportunity to 'signal' an announcement at the November meeting.
Snippet comments via eFX: For bank trade ideas, check out eFX Plus.
- The 22 September FOMC will likely signal a tapering decision at the next meeting, providing few details.
- The dots will likely signal one 2022 hike, and two added hikes in both 2023 and 2024.
- The risk skew is for more rather than less hikes; the added hawkish lean in not fully priced, in our view.
- The USD could find short-term support on a hawkish tilt and any risk-off reaction
