Saturday July 25, 2015 - 15:27:15 GMT
Share This Story
Global-View - www.global-view.com
Fed Meeting Wednesday Could Be Historic: Week Ahead
John M. Bland
Focus On Fed Wednesday
In her latest testimony to Congress a few weeks ago, Fed Chair Janet Yellen in no uncertain terms made it clear the Fed has as its goal to start to "normalize" (= raise interest rates) as soon as it is able to do so. This central bank policy objective came despite political pressure from numerous Members of Congress to hold rates steady for longer in her testimony.
While we would be the first to agree that Fed policy usually does not turn on a single economic number, the dip in the weekly non-farm payrolls released on Thursday to 255K (lowest since 1973) could provide the Fed with the needed pretext to signal a September rate hike at this Wednesday's meeting. In my judgement the Fed has become overly sensitive to fear the markets might over-react to a modest policy tightening. However, if they plan to hike in mid-September this would be perfect time lay the groundwork for a hike in September. It seems that the markets are starting to sense the same thing. So this week could see an historic Fed meeting.
The upcoming week could be important for market-moving economic data.
-- Monday, July 27, German IFO Survey and U.S. Durable Goods.
-- Tuesday July 28, U.K. GDP. U.S. flash Service PMI and Conference Board Consumer Confidence Survey.
-- Wednesday July 29, U.S. Pending Homes Sales and Federal Reserve Policy Decision.
-- Thursday July 30, German Employment and flash July HICP. U.S. GDP.
-- Friday July 31, EZ flash July HICP, CA GDP and U.S. Chicago PMI plus the final University of Michigan Survey.
Be sure to refer daily Global-View to see the continuously UPDATED Economic Calendar and the Forex Forum for the 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."