31 Jul 2013
Flash: FOMC, no big fireworks – TD Securities
FXstreet.com (London) - This is one with no press conference and no fresh economic forecasts, so this shouldn’t be one for big fireworks, said Marcin Budkiewicz, Strategist, Rates and FX Research at TD Securities.
Key Quotes:
“The Fed is in a holding pattern and must feel generally comfortable on the state of play within markets”.
“We do not expect anything new to emerge from the FOMC statement, but smaller tweaks could include more emphasis on the uncertainty from the fiscal drag, and maybe a shift in the inflation language to emphasize the downside bias”.
“The net effect is likely to be positive for bonds and equities and less favourable for the USD. Nothing should emerge to alter our assumption that tapering begins this September”.
Key Quotes:
“The Fed is in a holding pattern and must feel generally comfortable on the state of play within markets”.
“We do not expect anything new to emerge from the FOMC statement, but smaller tweaks could include more emphasis on the uncertainty from the fiscal drag, and maybe a shift in the inflation language to emphasize the downside bias”.
“The net effect is likely to be positive for bonds and equities and less favourable for the USD. Nothing should emerge to alter our assumption that tapering begins this September”.