Waiting for the central banks – Deutsche Bank
|By FXStreet Phil Odonaghoe, Economist at Deutsche Bank, suggests that the light dataflow has left little to guide sentiment over the past 24 hours, leaving markets in something of a holding pattern ahead of a number of central bank meetings this week, including the Federal Reserve, and Bank of England (and starting with the BoJ today, which left the policy rate unchanged as expected).
Key Quotes
“US equities were mixed, and US treasury yields slipped a little through the session. European bourses closed stronger though Asian bourses had lost ground in midday trading Tuesday.
With little to look back on over the past 24 hours, we will take the opportunity to look ahead. It seems likely that the key highlight this week will be the Federal Reserve meeting, which concludes Wednesday. Our US economics team expect the Fed to remain on hold, but to nonetheless re-introduce their “balance of risks” language in the post-meeting statement, thereby leaving open the possibility of a rate hike as soon as the June 14-15 meeting. Overall, they expect the statement will strike a cautiously optimistic tone given the stabilisation in domestic and international equity markets (up about 9% from their intra-quarter low). On the domestic economic assessment, …read more
Source:: FX Street