Gold Could Still Benefit From ‘Grexit’ – Capital Economics
Although currency analysts from BNP Paribas are bullish on the U.S. dollar, they do not expect to see a rally following Wednesday’s Federal Open Market Committee meeting. “In the press conference Chair Yellen will likely continue to emphasize that rate hikes are likely coming at some point later this year. However, the meeting may not provide a decisive catalyst for the US currency. Our economists note that the FOMC’s projection ‘dots’ are likely to shift in a dovish direction as the more hawkish members acknowledge that tightening will not begin in mid-2015. The Committee and Chair Yellen will also need to explain its decision to leave rates unchanged now and be sure to avoid signaling lift off at the July meeting,” they say.