Forex Analysis
Fed prepares for tapering asset purchases
FOMC more optimistic on growth and employment, but slightly more concerned on inflation.
The Global Macro Pulse
Overnight Price Action All Asian equity markets have fallen following the 1.4% fall in the S&P 500 overnight and a weaker than expected HSBC China flash PMI.
Bernanke: soon, but not yet
Either market participants were positioned for a more downbeat FOMC or were determined to use the occasion to push yields and the USD higher.
FX Daily
Market movers today • Fed fears and Chinese growth concerns will be at the top of the agenda in the European trade today.
USD/JPY Analysis
The pair initially spiked from Y95.25 to Y95.75 after the Fed said labour market shows further signs of improvement and downside risks diminished.
GBP/USD Analysis
On FOMC release cable slipped from $1.5670 to $1.5590 as the dollar found support across the board.
EUR/USD Analysis
As expected the FOMC decided to leave rates on hold yesterday with no change in policy.
A Bumpy, But Creditable, Follow On
We can argue, till the cows come home, the many negatives and positives in today’s bumpy Q1 GDP result.
Mid-Day FX Market Analysis
USD: The Dollar was able to bounce back from a new 4-month low and post a modest gain this morning,
Preview Norges Bank: Reduced probability of a rate cut in H2
We do not expect any change in interest rates from Norges Bank at its meeting tomorrow, nor do we anticipate any signals of changes in the near future (within the strategy period).
BOE Minutes: MPC voted 6-3 against expanding asset purchases.
The message in Minutes from the May MPC meeting was very similar to that of previous meetings and therefore our interpretation remains the same
Central European Daily
Czech central bankers talk against koruna New Hungarian leading indicator Uncertainty ahead of today’s outcome of Fed meeting weighed on the Polish zloty and