Tag Archives: FOMC
FX Daily Strategist: US
* Eurozone political and ECB developments in focus. EUR upside beckons EURUSD continues to trade close to seven week highs at 1.2550 – 1.2600. The market focus still remains firmly on the ECB’s extraordinary policy response on which details are not yet fully available.
FX Daily Strategist: US
*FX to yet price QE3; EURUSD to accelerate towards 1.2700 into next week As anticipated, the FOMC minutes yesterday came in on the dovish side invigorating QE3 expectations. USD has been hurt vs. G10 FX, but more so against Asian and CEMEA FX.
Draghi talks tough, but Euro hits airpocket on lack of specifics
Draghi unleashed a string of firm-sound rhetoric to open the ECB press conference, touching on a number of key areas, but the lack of “real action right now” has the market in a big knee-jerk disappointment.
Central Bank Insights – Pre-FOMC: Extension of forward guidance, but no Q3 just yet?
The trend down in real GDP growth is unmistakable; from 4.1% at an annual rate in Q4 of last year, to 2% in Q1 to 1.5% in Q2. At such a pace the U.S. economy is extremely vulnerable to shocks such as the downturn in Europe and the upcoming fiscal retrenchment.
FOMC Meeting: 3 possible scenarios, plus 3 policy drivers
Expectations are swirling about tomorrow’s FOMC meeting and what it will bring in the way of further hints of the timing, nature, and size of the inevitable QE3. But there’s something else to speculate on whenever we have a known important event risk in the crosshairs: what market expectations have already priced in.
A busy week ahead – too much QE priced in?
The FOMC is up Wednesday – more ambiguous rhetoric or is this a set-up meeting for a September QE3 move? And the ECB will need to see Draghi following up on last week’s rhetoric or else…
FOMC kneejerk reaction reverses course
The knee-jerk reaction to the Fed’s extension of Operation Twist to the end of 2012 quickly yielded back to the risk-on and a further sell-off in bonds, which could mean the most pressure will be on the JPY from here.
Will Bernanke deliver on this market’s expectations?
This market is ready to twist in shout ahead of tomorrow’s FOMC meeting and anticipation of the extension of the Fed’s easing. Tomorrow may set the tone for some time to come.
Pre-FOMC: Close call
U.S. economic activity continues to disappoint; real GDP growth is currently tracking slightly below 2% in the second quarter which means that the unemployment rate is unlikely to drop any further this summer.
Asia today: 3 in a row! Oz trade data better than consensus
For the third day in a row, Australia was in the spotlight during the Asia session. This time it was the turn of trade data for April. The trade balance came in at a deficit of A$203 mln, well below consensus estimates of a A$900 mln deficit and a sharp improvement on the revised A$1.282 […]
Japan, Singapore post better Q1 GDP but risk appetite still shaky
Asian growth was the focus for markets this morning with Japan and Singapore both producing above-forecast results. However, the effect across the region was dampened by gloomy near-term outlooks and the ongoing Greek pressures.
FX Daily Strategist: Europe
FOMC commentary challenges view of ‘More Twist in June’….. Treasuries initially sold off and the dollar drew support from the FOMC post meeting statement. These moves were subsequently reversed after Mr Bernanke made clear in the post-meeting press conference that ‘We remain prepared to do more’.