Citi discusses its expectations for this week's FOMC meeting.
"We expect the April FOMC to mostly stay the course, acknowledging a more positive outlook without sending new policy signals. We expect only minor changes to the Statement and press conference to acknowledge positive recent data. A hawkish surprise would be if the Fed acknowledged progress more prominently, paving the way to an advance warning of tapering asset purchases," Citi notes.
"No changes are still dovish for Markets and would leave the Fed dovish vs the BoC, the ECB and others, and support our bearish USD view. However, we suspect that Markets may go into the Meeting with a bit of caution, in light of the possibility of a hawkish tilt," Citi adds.