Fed in full swing today as market look for December lift-off clues – TDS

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 28, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Delhi) – Cristian Maggio, Head of Emerging Markets Strategy at TD Securities, suggests that the key question investors will look to answer will be whether recent slowing in economic growth momentum is sufficient to rule out a December rate hike, or whether the Fed will continue to keep the 2015 dream alive.

    Key Quotes

    “The October FOMC decision is in full view, with the market left to pore over the statement (no presser or dots) in order to glean any hint of the Fed’s bias. A downgrade to the economic assessment or outright capitulation on 2015 hikes could help bull steepen the curve, but if the Fed refuses to capitulate, we could see curve flattening momentum take the reins.”

    “Aside from the Fed, the advance September trade balance will be closely watched, expected to narrow modestly to -$65.7bn from -$67.2bn. Treasury will also auction $35bn in 5s just an hour before the FOMC decision, with averages suggesting a stop 0.2bp through the screens and 66% buy side takedown despite uncertain prospects.”
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