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17 Jun 2013
Flash: FOMC in focus - OCBC
FXstreet.com (London) - Analyst, Emmanuel Ng for OCBC explains that the cornerstone for markets may come in the form of the FOMC on Tue-Wed with the meeting statement and press conference to be closely scrutinized.
He noted, with the DXY losing ground last week and markets engaged in position adjustments, his team thinks that the current expectations is for the Fed to shy away from rocking the boat in terms of hastening any perceived tapering. To this end, they think the Fed chairman may also take pains to differentiate between a tapering and a tightening in monetary policy, especially in light of the recent market volatility on the back of tapering concerns. Meanwhile, he also notes that the IMF had also lowered its growth outlook for the US economy for this year. On other fronts, he say’s investors may also remain on the lookout for emerging headlines from the G8 meeting on Mon-Tue, although they do not expect significant market-moving headlines.
He noted, with the DXY losing ground last week and markets engaged in position adjustments, his team thinks that the current expectations is for the Fed to shy away from rocking the boat in terms of hastening any perceived tapering. To this end, they think the Fed chairman may also take pains to differentiate between a tapering and a tightening in monetary policy, especially in light of the recent market volatility on the back of tapering concerns. Meanwhile, he also notes that the IMF had also lowered its growth outlook for the US economy for this year. On other fronts, he say’s investors may also remain on the lookout for emerging headlines from the G8 meeting on Mon-Tue, although they do not expect significant market-moving headlines.