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EUR/USD has enjoyed a great week, and the pair is steady ahead of a crucial FOMC meeting later today, amid speculation that the Federal Reserve may announce QE3. Will Bernanke finally pull the trigger? Or will he wax eloquent but stand pat? The euro got a nice boost from Wednesday’s decision by a German court…
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The Fed is expected to raise interest rates by 75bps on Wednesday. The BoE is expected to deliver a 50 or 75bps rate hike. Britain’s challenges stem from opposing monetary and fiscal policies. Today’s GBP/USD outlook is bearish. However, this might change as the pair will likely consolidate with Britain observing a public holiday. This…
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FOMC Chairman Jerome Powell officially opened taper discussion at the last meeting and more in-depth discussion will follow, St. Louis Fed President James Bullard told CNBC on Friday, as reported by Reuters. Additional takeaways “Upcoming fiscal debates on infrastructure are not likely to influence monetary policy.” “Fed has eye on equity market valuations but different…
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The US Federal Reserve Open Market Committee (FOMC) is expected to prep up markets towards tapering by taper talks when it meets this week at its monetary policy meeting, Morgan Stanley said in its latest research note. Key quotes “We expect especially notable near-term upward revisions to inflation projections, while we think the most likely…
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The European Central bank (ECB) has left its policy unchanged. The April Governing Council meeting was largely a non-event for the FX market. Economists at TD Securities expect investor attention to pivot quickly to next week’s FOMC. This should keep EUR/USD loosely anchored within the 100/200-day moving average range ahead of that risk event. EUR/USD…
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In its latest preview for Wednesday’s key Federal Open Market Committee (FOMC) meeting, Goldman Sachs says, “The Fed needs to see substantial further progress on employment and inflation to conclude that tapering is appropriate, which is unlikely to happen until the second half of 2021.” The report also states that the US central bank may…
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A critical event next week will be the FOMC meeting. Analysts at MUFG Bank consider that Jerome Powell will focus on the labour market rather than economic growth. They consider the US dollar could continue with support with “anything less” than a strong commitment to keep financial market conditions accommodative. Key Quotes: “The BoC…
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US Treasury Secretary Janet Yellen is expected to hold a meeting with the Securities Exchange Commission (SEC), the Federal Reserve (Fed), the New York Fed and the Commodity Futures Trading Commission this week, Reuters reports, citing sources familiar with the matter. Key details The meeting is to discuss GameStop-related market volatility. To take place as…
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Analyst at Danske Bank took a look into ongoing discussions on how the Federal Reserve could strengthen its forward guidance, signaled by them as the central bank’s main concern, “from both a theoretical and practical point of view”. Key Quotes: “We argue that the Fed is considering implementing a cap on 3yr US Treasury yields…
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AUD/USD hits fresh 7-week highs at 0.6550 after the Fed’s decision. The USD loses ground on Fed Powell’s press release. The Federal Reserve maintains its dovish rhetoric and pledges to whatever it takes. The Australian dollar is crawling higher, as the USD loses ground against its main peers after the Federal Reserve disclosed its monetary…
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The gold price struggled amid the risk-on tone in markets, strategists at ANZ Bank inform. Key quotes “The yellow metal held above USD1,700/oz amid expectations of more monetary easing among central banks.” “Investors remain cautious heading to meetings by the Fed and the ECB. The focus on these meetings will be around the longevity of…