IronFX Daily Commentary by Charalambos Pissouros | 06/04/2017
April 6, 2017 8:49 am
FOMC minutes: Balance sheet reduction is on the horizon • The minutes showed that policymakers are considering how, when, and at what speed they should start reducing the Fed’s balance sheet. • Probably later this year, and with a clearly communicated plan to avoid financial instability. • USD reaction was volatile, rose initially but then reversed. The reaction was not huge though. • Focus now turns to the Trump-Xi meeting today, and tomorrow’s NFP (ADP was very strong!).
Trump and Xi Jinping will meet to discuss trade • In the US, President Trump will meet Chinese President Xi Jinping. Expected to discuss trade. • This meeting may be seen as a risk to global free trade, given Trump’s pre-election rhetoric. • Any talks of increased protectionism could generate concerns regarding protectionism on a global scale and thereby, weigh on AUD & NZD.
As for the rest of today’s highlights: • Eurozone: Minutes from ECB March meeting. Usually not a major market mover, but given the hawkish signals we got at that meeting and the subsequent Reuters article that investors over-interpreted those signals, the minutes may attract some attention. • US: Initial jobless claims for week ended 31st of March. • Speakers: ECB President Draghi, Vice President Constancio, as well as Executive Board members Praet and Weidmann.
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FOMC minutes: Balance sheet reduction is on the horizon
• The minutes showed that policymakers are considering how, when, and at what speed they should start reducing the Fed’s balance sheet.
• Probably later this year, and with a clearly communicated plan to avoid financial instability.
• USD reaction was volatile, rose initially but then reversed. The reaction was not huge though.
• Focus now turns to the Trump-Xi meeting today, and tomorrow’s NFP (ADP was very strong!).
Trump and Xi Jinping will meet to discuss trade
• In the US, President Trump will meet Chinese President Xi Jinping. Expected to discuss trade.
• This meeting may be seen as a risk to global free trade, given Trump’s pre-election rhetoric.
• Any talks of increased protectionism could generate concerns regarding protectionism on a global scale and thereby, weigh on AUD & NZD.
As for the rest of today’s highlights:
• Eurozone: Minutes from ECB March meeting. Usually not a major market mover, but given the hawkish signals we got at that meeting and the subsequent Reuters article that investors over-interpreted those signals, the minutes may attract some attention.
• US: Initial jobless claims for week ended 31st of March.
• Speakers: ECB President Draghi, Vice President Constancio, as well as Executive Board members Praet and Weidmann.
Join us for more technical and fundamental analysis: http://www.ironfx.com
To get the latest Forex trading news you should:
• Download the IronFX Research app: http://goo.gl/jhQIxO
• Like us on Facebook: https://www.facebook.com/IronFX
• Follow us on Instagram: https://www.instagram.com/ironfx
• Follow us on LinkedIn: https://goo.gl/wSEbPN
• Follow us on Twitter: https://twitter.com/IronFXGlobal
• Circle us on Google+: https://www.google.com/+Ironfxglobal
• Subscribe to our Channel: http://bit.ly/1foFmCU
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