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13 Sep 2013
Flash: How will EUR/USd react to the FOMC? - Nomura
FXstreet.com (London) - Matthew Slade, Strategist at Nomura said the week is likely to be all about the FOMC meeting (Wednesday). EUR/USD is oscillating around 1.3300 and traders will be awaiting the noise around this key event next week.
Key Quotes:
"The week is likely to be all about the FOMC meeting (Wednesday). Our view is that the Fed will do its best to send a balanced message".
"We think it most likely will taper its purchases by a small amount (probably $10bn of USTs only) and at the same time
enhance the forward guidance in some form".
"We think the FOMC will formalise what Chairman Bernanke has already said – that an unemployment rate below 6.5% will not automatically trigger a rate hike, especially not if inflation is low".
"It‟s also worth bearing in mind that that tapering is not a done deal in September".
"Some FOMC members are getting “cold feet” about the economy not improving as fast as expected, and “later this year” never actually had to mean 18 September specifically".
Key Quotes:
"The week is likely to be all about the FOMC meeting (Wednesday). Our view is that the Fed will do its best to send a balanced message".
"We think it most likely will taper its purchases by a small amount (probably $10bn of USTs only) and at the same time
enhance the forward guidance in some form".
"We think the FOMC will formalise what Chairman Bernanke has already said – that an unemployment rate below 6.5% will not automatically trigger a rate hike, especially not if inflation is low".
"It‟s also worth bearing in mind that that tapering is not a done deal in September".
"Some FOMC members are getting “cold feet” about the economy not improving as fast as expected, and “later this year” never actually had to mean 18 September specifically".