Forex Flash: FED to maintain the pace of assets purchases - BNZ

FXstreet.com (Barcelona) - “Admittedly, the approach of FOMC meeting and sliding US bond yields are adding to the downward pressure on the greenback,” says Mike Jones, Currency Strategist at BNZ. “10-year yields touched a 4-month low o 1.64% overnight as falling inflation (the core PCE fell to 1.1% on Monday) and deteriorating economic data has raised speculation the Fed could be a little more dovish this time around,” Mike notes, adding: “We doubt the Statement (released tomorrow morning at 6am NZT) will discuss addition asset purchases.”

“Rather, it will simply toe a similar line than last time, an maintain the pace of asset purchases at US$85b/month,” the analyst concludes.