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1 May 2013
Forex Flash: Don't be expecting a change in the monthly QE pace at upcoming Fed Meeting – Westpac
FXstreet.com (Barcelona) - The US Dollar Index finished the day sharply lower, closing down 0.54% at 81.72. This was the lowest daily close since Feb 27th, and could lead to further weakness with the Federal Reserve Monetary policy meeting due out in the next US session.
According to Sean Callow, Senior Currency Strategist at Westpac Global Strategy, “The main focus will be the 2pm NY release of the FOMC statement. As activity data has decelerated and inflation readings have softened further than expected, no one should be expecting either a change in the $85bn monthly QE pace ($40bn MBS, $45bn Treasuries) or a hint that the case for tapering QE has grown. KC Fed’s George is likely to dissent again.”
He went on to add, “There is no press conference by Chairman Bernanke after this meeting. Despite what should be low expectations for firm hints in the statement, USD may well be whippy after the release, with a bias to the weak side.”
According to Sean Callow, Senior Currency Strategist at Westpac Global Strategy, “The main focus will be the 2pm NY release of the FOMC statement. As activity data has decelerated and inflation readings have softened further than expected, no one should be expecting either a change in the $85bn monthly QE pace ($40bn MBS, $45bn Treasuries) or a hint that the case for tapering QE has grown. KC Fed’s George is likely to dissent again.”
He went on to add, “There is no press conference by Chairman Bernanke after this meeting. Despite what should be low expectations for firm hints in the statement, USD may well be whippy after the release, with a bias to the weak side.”