A snippet of analysis from Commonwealth Bank of Australia (via Reuters) ahead of the FOMC this week:
- "The dollar is likely to continue to trend lower in line with the gathering momentum in the world economy"
- "We expect the Fed policy meeting to be a non-event for the dollar. The U.S. economy is a long way from meeting the 'substantial further progress' threshold for the Fed to taper its asset purchases."
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Fed asset purchases (i.e. QE) are not exp[ected to be wound back any time soon, supporting 'risk' at weighing on the dollar.
