FXStreet (Guatemala) – Sean Callow, chief analyst at Westpac Banking Corporation explained that the key events for the day ahead with the FOMC as main focus.
Key Quotes:
” Westpac MNI consumer sentiment indicator will be released at 11:45am Syd/9:45am local. It was at 112.3 in Jun, 0.3% lower than a year ago and 7.7% below the long run average. Jun’s survey already showed that Chinese consumers were anxious about their personal financial wellbeing, and Jul’s survey was taken while the equity market collapse was at its most extreme. We will see if this has triggered widespread risk aversion across all asset classes or if sentiment around housing has improved. Otherwise the calendar is largely quiet ahead of the FOMC meeting, with only US Jun pending home sales to be released.
The FOMC meeting concludes at 2pm NY with the usual brief statement but no press conference or forecasts. There is no obvious reason for the Fed to tip its hand re the Sep meeting (where Westpac continues to expect a rate hike). Commentary on the domestic economy should be broadly positive, any reference to global events somewhat less so. The long-winded, vague guidance on rate hikes being determined by “progress” towards employment and inflation should be repeated. Overall, it should be a low key release, with more helpful guidance on the Sep decision likely to be provided by the Fed speeches into the late August Jackson Hole conference.”
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