Market movers today
• FOMC meeting: In addition to the normal statement, the Fed will publish FOMC members’ projections for growth and the Fed funds rate, followed by a press conference with Chairman Ben Bernanke. He is likely to once again stress that QE tapering is not a tightening of monetary policy but rather a reduction in monetary easing and that QE tapering will not imply that the Fed has moved the timing of its first rate hike closer.
• Minutes from the June Bank of England meeting: The May minutes showed unchanged positions with a minority of three members voting for more QE. We expect this to have been unchanged at Governor King’s final MPC meeting.
• The Swedish government is selling a 5.7% stake in Nordea (around SEK18bn) and will use the proceeds to reduce the national debt. If there is a large foreign investor take-up, this should, on the margin, be SEK positive. June confidence surveys and May unemployment are also due to be published today.
Read the full report: FX Daily
Danske Bank