21 Aug 2013
Flash: FOMC to lead EUR/USD and DXY direction - BTMU
FXstreet.com (Barcelona) - Derek Halpenny, European Head of Global Markets Research at the Bank of Tokyo Mitsubishi UFJ notes that the key event for near-term direction for EUR/USD and the dollar generally will be the release tonight of the FOMC minutes of the meeting at the end of July.
Key Quotes
“The main change in the statement related to concerns over low inflation – so this aspect might give a degree of dovishness to the minutes.”
“However, tapering this year is likely to remain as a consensus although with no explicit timing.”
“Still, at the margin the greater risk tonight appears to be a conclusion that tapering might come a little later than September, which leaves the dollar vulnerable to some further near-term selling versus the majors.”
Key Quotes
“The main change in the statement related to concerns over low inflation – so this aspect might give a degree of dovishness to the minutes.”
“However, tapering this year is likely to remain as a consensus although with no explicit timing.”
“Still, at the margin the greater risk tonight appears to be a conclusion that tapering might come a little later than September, which leaves the dollar vulnerable to some further near-term selling versus the majors.”