Back
19 Mar 2014
Flash: Day ahead, FOMC big focus - Westpac
FXStreet (Bali) - Sean Callow, FX Strategist at Westpac, takes a look at the events lying ahead on Wednesday.
Key Quotes
"The Asian data calendar offers no particular inspiration today but there will again be interest in the yuan, after CNH has fallen or been flat for the past 8 trading sessions (not so “two-way”!)."
"The UK calendar is very crowded, starting with the minutes from the BoE MPC’s March meeting. The Feb meeting saw a unanimous vote for steady policy though there is always some variation in opinion on the MPC. We also see Feb jobless claims and the benchmark unemployment rate for Jan, which was 7.2% in the Dec reading. Then we have Chancellor Osborne’s annual budget delivered to parliament."
"The FOMC seems almost certain to cut its QE program by another $10bn at the announcement due 5am Thu Sydney time, to $55bn ($30bn treasuries, $25bn mortgage-backed securities). Hence there should be more interest in any tweaks to the statement (e.g. is the phrase “well past” 6.5% unemployment is still helpful?) and particularly in Janet Yellen’s first press conference as Fed chair (30 minutes later). Clearly she will be quizzed on whether the softness of economic data in recent weeks can simply be attributed to the severe winter, a question she will be ready to answer with lots of caveats. Updated forecasts on growth, inflation and the funds rate should be little changed from Dec but closely watched anyway."
Key Quotes
"The Asian data calendar offers no particular inspiration today but there will again be interest in the yuan, after CNH has fallen or been flat for the past 8 trading sessions (not so “two-way”!)."
"The UK calendar is very crowded, starting with the minutes from the BoE MPC’s March meeting. The Feb meeting saw a unanimous vote for steady policy though there is always some variation in opinion on the MPC. We also see Feb jobless claims and the benchmark unemployment rate for Jan, which was 7.2% in the Dec reading. Then we have Chancellor Osborne’s annual budget delivered to parliament."
"The FOMC seems almost certain to cut its QE program by another $10bn at the announcement due 5am Thu Sydney time, to $55bn ($30bn treasuries, $25bn mortgage-backed securities). Hence there should be more interest in any tweaks to the statement (e.g. is the phrase “well past” 6.5% unemployment is still helpful?) and particularly in Janet Yellen’s first press conference as Fed chair (30 minutes later). Clearly she will be quizzed on whether the softness of economic data in recent weeks can simply be attributed to the severe winter, a question she will be ready to answer with lots of caveats. Updated forecasts on growth, inflation and the funds rate should be little changed from Dec but closely watched anyway."