Warsh, Lagarde and Bailey signal joint retreat from forward guidance at Sintra
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A coordinated retreat from forward guidance across the Fed, ECB, BOE and BOC raises the odds of choppier price action around future policy meetings, since markets will have fewer explicit signals to anchor rate expectations. Traders who have relied on dot plots and guidance langu
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FX Daily: Warsh should keep the dollar supported
The desk anticipates that the dollar will remain well-supported, particularly in light of statements expected from Kevin Warsh at the ECB's Sintra conference. Per the full note [source], Warsh's hawkish tone following last month's FOMC meeting has shaped market expectations, with anticipated Fed tightening priced into the curve. Given stronger economic signals, including a recent core PCE print of 3.4% YoY and a robust jobs report, the environment favors dollar strength as traders await further indications from Warsh about monetary policy direction.