Week in FX Americas – The Big Boys Are Back next Week: FOMC

Nothing is changing the investors view - next week's FOMC meeting is likely to maintain the policy status quo. Many expect Helicopter Ben and his cohorts to reaffirm both elements of their current accommodation efforts, with forward guidance and the QE program unlikely to be changed.

Agreed, there has been some notable developments affecting the US economic outlook since January's meeting, like this week's unemployment claims and perhaps last week's potential game changer, the NFP headline print. However, despite leading the G4 major economic pack, there remains a strain between these fundamental improvements and global lingering uncertainties that could create some problems. In reality, one employment benchmark does not make a job improvement trend consistent just yet. The fear of any imminent economic hindrances will have policy makers supporting financial conditions for a tad while longer.

The US 10-year yield rally is helping to support the “mighty'...