Bank of America: Will the April meeting of the Federal Reserve affect the dollar?

Current market quotations provide zero chance for raising rates at the next few meetings of the Federal Reserve, note forex strategists of Bank of America. Investors have calculated less then one increase in rates by 25 basis points by the end of the year. Minding the short-term outlook, disappointing macroeconomic data and cautious comments of regulators, similar position seems justified.

However, by Bank of America highlight that the global economic and financial picture stabilize, while not improving. Analysts believe that the US central bank will raise interest rates twice by 25 basis points in 2016. The next step in this direction will be taken in the summer, most likely - in June, but if a referendum on Britain's membership of the European Union increase significantly volatility, more likely the raising will happen July.

Could the April meeting of the Federal Reserve to alter the trajectory of the dollar? Hardly, according to the Bank of America. The central bank will remain cautious because the decline in the currency after the March meeting is a positive development. At present, the markets believe that the chance of an increase in rates in June is below 20%. Modest adjustments to the statement of Regulators would have only limited support of the dollar provide strategists.