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The Federal Open Market Committee is beginning a two-day meeting, and these strategists have a trading plan.
Central bank watchers have plenty to do these days.
The FOMC is beginning a two-day meeting, and investors think Operation Twist could be extended, giving a lift to risk assets.
Across the pond, investors are awaiting possible interest rate cuts or other moves to loosen monetary policy at meetings of both the European Central Bank and the Bank of England in July.
At Barclays Capital, strategists Guillermo Felices and Sreekala Kochugovindan say the firm's economists think a 50-basis-point rate cut is possible from the ECB, as are asset purchases on the order of 50 billion pounds by the Bank of England. And those prospects, combined with the pro-bailout parties' victory in the Greek election , are pointing them to a trading recommendation.
"Taken together, the news on Greece and the increased likelihood of support from central banks mean that global risk appetite should remain supported in the near term, even if European specific risks remain high or even escalate," they wrote in a note to clients. So they suggest selling the euro against G10 currencies of countries with stronger growth possibilities.
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