Post Tagged with: "FOMC"
Robust US Recovery to Keep Fed Doves Low
The composition of the Federal Reserve has undoubtedly changed in favor of the doves. However, the strong recovery in the US, and the already loose monetary policy will likely remain unchanged. David Song of DailyFX discusses the Fed, China’s landing, Spain’s edge over Italy, Britain’s safe haven status and one currency which still has a
Lose-Lose Situation for the Euro
If the ECB continues its policy regarding bond buying, the euro is set to fall. If it launches QE, it will likely follow the path of the greenback after QE2, with one specific euro cross set to gain. Christopher Vecchio of DailyFX analyzes the current situation of the euro, the bright side for the pound in the
FOMC Preview: 3 Reasons for No Changes and 3 For Action
The FOMC will likely remain on the sidelines for a second meeting in a row. The balance between the different members remains unchanged and so do indicators. Any action by the Fed will indicate a very worrying situation among banks, probably on the other side of the Atlantic, but the chances are small. The only hope
EUR/USD Dec. 12 – Sliding Down on Fear of Bond Auctions, S&P Action
Euro dollar is sliding in range in the new week. The EU Summit resulted in general ideas for preventing a future debt crisis, but didn’t address the current one. The real response will be seen in Italian and Spanish bond auctions. Also S&P is awaited: it warned all euro-zone countries and said that the outcome will
EUR/USD Nov. 3 – Depressed by Greek Referendum Certainty
Euro dollar is settling in a lower range after the meetings that preceded the G-20 meetings made it clear that the Greek referendum will go through on December 4th/5th. Greece’s euro-membership is on the cards. Today we have the euro-zone first rate decision by Mario Draghi and quite a few important US events. Here’s a quick
FOMC Disagreement Likely To Yield No Policy Changes
The ammunition that the Fed claims to have will likely stay in storage for now. David Rodriguez of DailyFX says that the disagreement within the members is likely to yield a unified message but no action. Mario Draghi will likely want to build credibility and skip a rate cut. And what about the credibility of
EUR/USD Closes Gap Just Before Bernanke
EUR/USD now trades at 1.3775, a few pips away from the close on Friday. The market expects Bernanke to announce significant monetary stimulus that will weaken the dollar. But what happens if the FOMC doesn’t deliver? We might see a “buy the rumor sell the fact” movement. The euro started the week with a big
7 Scenarios for FOMC: Many Measures are Needed for the Dollar to Fall
Ben Bernanke and his colleagues will be discussing a wide range of monetary stimulus options. Quite a few options are on the agenda, as the Federal Reserve is urged to do something to kick start the economy. QE3 is low on the list. The statement published on Wednesday, 18:15 GMT will be closely watched and will likely
Market Direction To Become Clearer After Wednesday
Christopher Vecchio, a currency analyst with DailyFx.com discusses the upcoming FOMC meeting and sees a small chance for big move. He analyzes the impact on commodity currencies, oil and gold and sees a negative outcome for them. Vecchio also discusses the situation in the euro zone and lays out an option of a split with
Stinking stocks & beautiful bonds
Risk repulsion suddenly set in once again yesterday in response to a truly awful Philly Fed survey for August, renewed concerns over Europe’s debt crisis and significant disagreements among FOMC members regarding the direction of Fed policy. As a result, stocks swooned, and bond prices soared. In Europe, the DAX dropped nearly 6%, the FTSE