23 Oct 2013
Morning outlook: the Fed is king
FXstreet.com (London) - Yesterday’s non-farm payroll figures suggested a US economy losing momentum, with non-farms adding just 148,000 jobs in September. This figure comes before the effects of any sandbagging of the US economy caused by the first government shutdown in 17 years.
In the broken markets that we live in, the disappointing US numbers helped support risk on the anticipation that any tapering of the Fed’s USD85bn-a-month asset purchase programme would be pushed well into next year.
The S&P climbed 0.57 percent and the Dow climber 0.49 percent.
AUD was one of the biggest beneficiaries of the risk-on trade, but was given further support when CPI printed stronger than expected, before paring losses with the RBA having little space to manoeuvre traditional monetary policy. AUD/USD shed 0.64 percent after hitting highs of USD0.9758.
Bank of England minutes due today are expected to contain few surprises and are the last release before the November inflation figures. Some are looking for indications that the BoE may consider bringing forward its rate hike forecast due to improving labour market conditions.
The Bank Of Canada is expected hold rates today, but may update growth projections, particularly in line with the sluggishness of the US, Canada’s main trading partner.
In the broken markets that we live in, the disappointing US numbers helped support risk on the anticipation that any tapering of the Fed’s USD85bn-a-month asset purchase programme would be pushed well into next year.
The S&P climbed 0.57 percent and the Dow climber 0.49 percent.
AUD was one of the biggest beneficiaries of the risk-on trade, but was given further support when CPI printed stronger than expected, before paring losses with the RBA having little space to manoeuvre traditional monetary policy. AUD/USD shed 0.64 percent after hitting highs of USD0.9758.
Bank of England minutes due today are expected to contain few surprises and are the last release before the November inflation figures. Some are looking for indications that the BoE may consider bringing forward its rate hike forecast due to improving labour market conditions.
The Bank Of Canada is expected hold rates today, but may update growth projections, particularly in line with the sluggishness of the US, Canada’s main trading partner.