IronFX Daily Commentary by Charalambos Pissouros | 21/09/2016
September 21, 2016 8:27 am
BoJ abandons monetary base target • BoJ kept negative rate unchanged and said to expand monetary base until inflation above 2%. • The Board decided to modify its policy framework with yield control (10 yr yield to hover around 0). No official base money target. • JPY spiked up initially, but reversed as Nikkei rallied.
One down, one to go…focus shifts on Fed • FOMC is widely expected to remain on hold. Current market pricing assigns only 18% probability of a hike. • FOMC members have been conflicting recently, suggesting that a consensus to raise rates is unlikely to be reached. • The focus will be on the updated “dot plot”, the new economic forecasts and Chair Yellen’s press conference. • We expect a downward revision of the median “dot” to show only one hike this year and a lower longer-term rate path overall.
Today: • Norway: Unemployment rate for July exp. to remain unchanged. • Canada: Wholesale trade for July.
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BoJ abandons monetary base target
• BoJ kept negative rate unchanged and said to expand monetary base until inflation above 2%.
• The Board decided to modify its policy framework with yield control (10 yr yield to hover around 0). No official base money target.
• JPY spiked up initially, but reversed as Nikkei rallied.
One down, one to go…focus shifts on Fed
• FOMC is widely expected to remain on hold. Current market pricing assigns only 18% probability of a hike.
• FOMC members have been conflicting recently, suggesting that a consensus to raise rates is unlikely to be reached.
• The focus will be on the updated “dot plot”, the new economic forecasts and Chair Yellen’s press conference.
• We expect a downward revision of the median “dot” to show only one hike this year and a lower longer-term rate path overall.
Today:
• Norway: Unemployment rate for July exp. to remain unchanged.
• Canada: Wholesale trade for July.
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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