Calculated Risk: FOMC Preview calculatedriskblog.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from calculatedriskblog.com Daily Mail and Mail on Sunday newspapers.
Currency markets seek direction
Currency markets content to watch from the sidelines
Currency markets have moved into range-trading mode ahead of tonight’s US data, with US bond yields almost unchanged overnight, and no direction to be gleaned from equity markets either. The dollar index eased slightly by 0.11% overnight but has risen 0.12% to 92.25 this morning, leaving us where we started yesterday.
Unsurprisingly, that has left developed market currencies almost unchanged as well, with EUR/USD steady at 1.1890, GBP/USD at 1.3735, and USD/JPY at 109.65. Key levels remain for EUR/USD at 1.1700 and 1.1925, 1.3675 and 1.3780 for GBP/USD, and 109.00 and 110.00 for USD/JPY.
Yellen found taxing fxstreet.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from fxstreet.com Daily Mail and Mail on Sunday newspapers.
Calculated Risk calculatedriskblog.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from calculatedriskblog.com Daily Mail and Mail on Sunday newspapers.
3/14/2021 10:53:00 AM
Expectations are there will be no change to rate policy when the FOMC meets on Tuesday and Wednesday this week, but that the FOMC will upgrade their outlook.
Here are some comments from Merrill Lynch economists: The FOMC meeting on the 17th will be one of the most critical events for the Fed in some time. We believe Fed Chair Powell will have to strike the right balance between a more upbeat assessment of the outlook and the asymmetric FAIT [flexible average inflation targeting] reaction function. The result will be
an acknowledgement that liftoff is earlier than believed back in mid-December but that it is still later than markets currently believe. .