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11 Sep 2013
Flash: September FOMC Preview, positive for EUR/USD – TD Securities
FXstreet.com (London) - Eric Green, Global Head Rates, FX & Commodity Research at TD Securities brings FOMC into focus.
Key Quotes:
”Fed set to taper $10B. Risk for $5B taper more likely than $15B. The amount of tapering may prove to be the least relevant development, that is already priced in, sensible forward guidance is not”.
“Bernanke must manage tapering in way that soothes and avoids a riot in bond markets. Forward guidance and communication are key as 2016 SEP forecasts loom. Unemployment threshold set to be lowered”.
“Absence of strong growth and inflation sufficient to taper. However, pace of subsequent tapering increasingly a function of firming growth. Data dependent path to be emphasized”.
“Market well positioned for tapering. We outline market reactions given FOMC options and suggest post-meeting reaction positive for bonds, negative for USD”.
Key Quotes:
”Fed set to taper $10B. Risk for $5B taper more likely than $15B. The amount of tapering may prove to be the least relevant development, that is already priced in, sensible forward guidance is not”.
“Bernanke must manage tapering in way that soothes and avoids a riot in bond markets. Forward guidance and communication are key as 2016 SEP forecasts loom. Unemployment threshold set to be lowered”.
“Absence of strong growth and inflation sufficient to taper. However, pace of subsequent tapering increasingly a function of firming growth. Data dependent path to be emphasized”.
“Market well positioned for tapering. We outline market reactions given FOMC options and suggest post-meeting reaction positive for bonds, negative for USD”.