Saturday March 14, 2015 - 15:08:46 GMT
Share This Story
Global-View - www.global-view.com
Fed Policy Meeting in the Spotlight -- March 15, 2015
The focus of traders for the past several weeks has been on the Fed policy decision on Wednesday March 18 at 14:00 EDT in Washington. the feeling increasingly has been that the central bank would remove the word "patient" from its policy statement. The word patient had been inserted in place of "extended time period" as forward guidance about a policy tightening. So when the central bank drops the word, a policy tightening will be imminent. Thus removal of the word from the policy statement is tantamount to a policy tightening. This is also an ideal opportunity for the Fed to move because the meeting features a press conference where Chair Yellen is able to explain the policy decision. .
Second Thoughts on a Fed Tightening Signal
Sudden second thoughts on Thursday that the Fed might become more cautious about signaling a policy tightening is thought to have been behind the rally in stocks. The genesis for the change of heart was a weather impacted weakening in January retail sales. Some also jumped on the February employment report as "not so good". They also cite the deflationary impact of the strong dollar. I feel the Fed is already invested in a policy tightening and is itching to get on with the process. My bet is on the Fed removing patient on Wednesday. This would give the U.S. currency another psychological boost higher.
The major focus in the week ahead is the Fed policy decision on Wednesday. The week also sees the quarterly meeting by the Swiss National Bank and a Bank of Japan policy meeting. By far, the Fed meeting is the most anticipated event. . Be sure to refer daily Global-View to see the continuously UPDATED Economic Calendar and the Forex Forum for a complete list of key items (actual data, selected charts, etc.) as they are released.
John M. Bland
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."