All eyes on US as FOMC expected to begin tapering today
City Index January 8, 2014 1:56 PM
<p>Today will notably be about the FOMC announcement, which takes place later tonight. Now that they have started the taper we’ll have to wait and […]</p>
Today will notably be about the FOMC announcement, which takes place later tonight. Now that they have started the taper we’ll have to wait and see how much will be taken off tonight.
There were comments from Fed’s Williams last night saying that QE will likely end this year, suggesting that each month some amount of taper can be expected. The exact amount isn’t certain but – with most now on the thought that QE will end this year – a steady $10 billion a month could end it by October. No doubt all will be revealed later tonight after the Fed decision.
The ADP jobs report is another big release today. With this always linked to the non-farm payrolls, it will be interesting to see what happens. The expected figure is 199k – a slight drop from the previous 215k.
Overnight one should keep note of Chinese CPI data, which is expected to drop to 2.7% from 3%. This will have an impact on the USD, mainly, and also on AUD – depending on the outcome.
Supports 1.3600 1.3570 1.3540 | Resistance 1.3650 1.3675 1.3725
Supports 104.80 104.30 103.90 | Resistance 105.10 105.50 106.00
Supports 1.6380 1.6335 1.6250 | Resistance 1.6434 1.6475 1.6500
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.