What’s the outlook for events in the America’s? – TDS

By FXStreet FXStreet (Guatemala) – Analysts at TD Securities noted the key events for next week in the Americas.

Key Quotes:

“Fed Lift-off (16 Dec): Along with 99% of analysts, we expect a Fed hike—but the overall tone of the communique won’t be as dovish as markets expect, reflecting the FOMC’s greater confidence in the economic outlook. The post-announcement press conference, however, will likely be a bit more balanced as Yellen can elaborate on the “gradual” path for rates. See here for a discussion of how short-end rates are likely to move once the Fed lifts off.

Banxico Decision (17 Dec): As the Fed goes, so does Banxico: we and the market expect a 25bp rate hike from the central bank, an expectation (given weaker price dynamics) based on the presumption that it will move in lock-step with the Fed, at least near the start of the policy cycle. Bloomberg consensus has the bias 4:3 in favour of a hike, however it would be unlikely that we see a deviation from the very much expected Fed hike, and so a failure to hike would certainly hit MXN. Banxico’s meeting calendar for 2016 suggests that it will remain fairly Fed-focused until mid-year, at …read more

Source:: FX Street