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15 Dec 2014
Market sentiments unfazed, FOMC meeting highly awaited – TDS
FXStreet (Barcelona) - The TD Securities Research Team shares the upcoming key events, noting that the clear focus for the markets will be the FOMC meeting on Wednesday.
Key Quotes
“Market sentiment so far has been unfazed as European equities trade higher, along with S&P futures. Although the European session has seen a decent bit of USD buying, this has been supported by higher UST yields as the market seems to be starting to position for the FOMC on Wednesday.”
“With limited market moving data today (we see slight upside risks to the US Empire survey but slight downside risks to US IP), the clear focus for markets will be the FOMC on Wednesday. We expect the Fed to drop the “considerable period” language from the statement in favour of some phrasing to convey the message of patience, potentially shifting the growth risks from “nearly balanced” to balanced, and leaving the dots relatively unchanged. Rate decisions from the Riksbank and National Bank of Hungary should be uneventful, though the interest for the former would fall on any indications that the bank provides on next steps for easing.”
“Outside of the central banks, events and data drivers for this week will be lighter. We look for generally softer UK CPI, retail sales and unemployment data this week that could see sentiment on the UK continue to soften. We see upside risks for Chinese flash PMIs on Tuesday, but downside risks for the Eurozone, while markets should largely look through the first round of Greek Presidential voting as there is no expectation the government can garner the 200 seats needed to win this stage..”
Key Quotes
“Market sentiment so far has been unfazed as European equities trade higher, along with S&P futures. Although the European session has seen a decent bit of USD buying, this has been supported by higher UST yields as the market seems to be starting to position for the FOMC on Wednesday.”
“With limited market moving data today (we see slight upside risks to the US Empire survey but slight downside risks to US IP), the clear focus for markets will be the FOMC on Wednesday. We expect the Fed to drop the “considerable period” language from the statement in favour of some phrasing to convey the message of patience, potentially shifting the growth risks from “nearly balanced” to balanced, and leaving the dots relatively unchanged. Rate decisions from the Riksbank and National Bank of Hungary should be uneventful, though the interest for the former would fall on any indications that the bank provides on next steps for easing.”
“Outside of the central banks, events and data drivers for this week will be lighter. We look for generally softer UK CPI, retail sales and unemployment data this week that could see sentiment on the UK continue to soften. We see upside risks for Chinese flash PMIs on Tuesday, but downside risks for the Eurozone, while markets should largely look through the first round of Greek Presidential voting as there is no expectation the government can garner the 200 seats needed to win this stage..”