The Day of the FOMCSeptember 26, 2013 Posted by: Pete Karabatos
Finally, the day of the FOMC has arrived. The dollar traded at almost a five‐ week low before the Federal Reserve announces whether it will slow its $85 billion of monthly bond purchases that have capped borrowing costs. Among 64 economists surveyed by Bloomberg News, 33 predict the Fed will taper its purchases of Treasuries by $5 billion or less, with 31 forecasting a cut of $10 billion or more. The central bank will announce its decision at the end of a two‐ meeting at 2 p.m. EST. In the UK, the MPC minutes this morning where relatively upbeat on growth and the BoE policy makers voted to keep policy unchanged this month as the economic outlook showed that no additional stimulus was needed.
U.S. housing starts increased 0.9% to 891k (median 916k) in August from 883k (was 896k) in July and 835k in June.
The BoE minutes to the September MPC meeting revealed unanimous votes to leave the repo rate at 0.5% and the QE total at GBP 375 bln.
The minutes noted that there "had been few developments" to change their assessment made at the August meeting.
China is concerned over Treasury market volatility in the face of Fed tapering, according to comments made by a government source to MNI.
Eurozone July Construction Output slowed to +0.3% m/m from +0.9% in June and fell to ‐1.2% y/y from ‐2.7%.
Chancellor Merkel said that Germany's election in four days will be referendum on the EUR future stability.
9/19 CAD: Wholesale Trade Sales (July)
9/20 CAD: Consumer Price Index (Aug.)
9/23 EUR: PMI Eurozone (Aug.)
9/24 USD: House Price Index (July)
9/25 USD: Durable Goods Orders (Aug.)
9/25 USD: New Home Sales (Aug.)
9/26 AUD: Conference Board Leading Index (July)
9/26 GBP: UK GDP(q2)
9/26 USD: Jobless Claims
Latest Low High % Change Day
EUR 1.3348 Range 1.3337 to 1.3364 ‐0.07%
GBP 1.5971 Range 1.589 to 1.5979 0.42%
CAD 1.0319 Range 1.0286 to 1.0317 0.21%
JPY 98.97 Range 98.76 to 99.33 ‐0.17%
CHF 0.9256 Range 0.9242 to 0.9268 ‐0.05%
AUD 0.935 Range 0.9333 to 0.9369 ‐0.05%
RUB 32.2991 Range 32.17...Read More