IronFX Daily Commentary by Sakis Paraskevov | 27/01/2016
January 27, 2016 9:39 am
Fed rate meeting: What to watch • After raising interest rates for the first time in almost a decade in December, the Fed is expected to remain on hold today. • With no press conference and no new projections, all the action will come from the statement accompanying the decision. • The dollar’s reaction will be highly dependent on the signalled path of future policy and on the tone of the statement.
Besides Fed, RBNZ hold its policy meeting • The Reserve Bank of New Zealand is expected to remain on hold after the 25bps rate cut in December. • Low oil prices, a slowdown in China and near zero inflation could prompt the Bank to leave the door open for further easing in the foreseeable future. In such case, NZD could weaken.
Overnight: Aussie jumps on inflation data • AUD/USD rose almost half a cent overnight, following the better-than-expected inflation data for Q4. • This has eased expectations for further stimulus by the RBA next week, which could support AUD, at least temporarily.
Fed rate meeting: What to watch
• After raising interest rates for the first time in almost a decade in December, the Fed is expected to remain on hold today.
• With no press conference and no new projections, all the action will come from the statement accompanying the decision.
• The dollar’s reaction will be highly dependent on the signalled path of future policy and on the tone of the statement.
Besides Fed, RBNZ hold its policy meeting
• The Reserve Bank of New Zealand is expected to remain on hold after the 25bps rate cut in December.
• Low oil prices, a slowdown in China and near zero inflation could prompt the Bank to leave the door open for further easing in the foreseeable future. In such case, NZD could weaken.
Overnight: Aussie jumps on inflation data
• AUD/USD rose almost half a cent overnight, following the better-than-expected inflation data for Q4.
• This has eased expectations for further stimulus by the RBA next week, which could support AUD, at least temporarily.
Today:
• UK: The nationwide house price index for January is forecast to slow down from the previous month.
• Germany: The Gfk consumer confidence for February is expected to decline.
• Sweden: Manufacturing confidence for January.
• US: New home sales for December are expected to have increased, but ahead of the FOMC they could pass unnoticed.
• Speakers: We have three ECB Executive Board members. Benoît Cœuré, Yves Mersch and Sabine Lautenschlaeger speak.
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