FOMC build up: what are the concerns? - BNP

Analysts at BNP Paribas explained that for many months the prospect of the start of the normalization of US monetary policy has given rise to considerable concerns at the heart of which are three questions: what is the risk of a policy error?

Key Quotes:

"What is the risk of a policy surprise? What is the risk of an endogenous disruptive market reaction to a policy stance?

The challenge for the Federal Reserve is huge if only because of the asymmetry in case of a policy mistake and the possibility of big reallocations of investment portfolios and global spillovers that could backfire on the US economy."

Mar 14, 2016

EUR/GBP: on the sidelines ahead of a key week

EUR/GBP is consolidated around the cluster of the 20, 100 and 200 1hr sma's in a sideways channel after last week's blow out on the ECB where the euro turnaround across the board and rallied, taking the cross up through the 0.78 handle.

Banxico to hold rates at next meeting at 3.75%; seen at 4.25% by year-end - TDS

According to analysts from TDS, the central bank of Mexico (Banxico) will keep the interest rate unchanged on Friday at 3.75% after the 50bp extraordinary rate hike during February. They forecast the rate to rise toward 4.00% during the second quarter and to 4.25% by year-end.