21 Aug 2013
Flash: Fed minutes to provide enough 'taper talk' to support USD - Westpac
FXstreet.com (Barcelona) - Attention turns to the minutes from the FOMC’s 30-31 July meeting, due out later on the US session, which is expected to contain enough “taper talk” to support USD, notes Sean Callow, FX Strategist at Westpac.
Key Quotes
"The last policy statement included a slight tweak to the growth description, to “modest” from “moderate” and the inclusion of a reference to the dangers of excessively low inflation. The latter caused St. Louis Fed president Bullard to drop his dissent from June but KC Fed’s George maintained her persistent dissent."
"FX markets were little changed net after the meeting but the 10 year T-note rallied 7bp. Markets are likely to be jittery over the inevitable references to e.g. “several”, “some” or “most” members with views on the merits of reducing QE."
Key Quotes
"The last policy statement included a slight tweak to the growth description, to “modest” from “moderate” and the inclusion of a reference to the dangers of excessively low inflation. The latter caused St. Louis Fed president Bullard to drop his dissent from June but KC Fed’s George maintained her persistent dissent."
"FX markets were little changed net after the meeting but the 10 year T-note rallied 7bp. Markets are likely to be jittery over the inevitable references to e.g. “several”, “some” or “most” members with views on the merits of reducing QE."