FXStreet (Delhi) – Research team at TDS, note that this week’s main focus will be on Central banks from across the globe as we have very limited data before the much awaited US Fed’s meeting on 17th of Sep.
Key Quotes
“Unfortunately for markets, while everyone has Fed on the brain, there is going to be very limited direct data or speeches to help guide any change of expectations into the decision on the 17th.”
“September had always been seen as the cleanest opportunity for the Fed to tighten this year, and now is looking just as problematic as the October and December dates to us with what looks like softer inflation data and global weakness on tap from here.”
“We do have more central banks on tap this week, which will all likely be looked at just as much as indicators of how the Fed may be viewing the environment as much as their own local implications.”
“We see the RBNZ cutting 25bps this week, as does unanimous consensus, and building in a further 25bps later this year. The Bank of Canada is also on tap mid-week, and while there is an outlier looking for a rate cut this week, the overwhelming consensus agrees with us that the Bank of Canada should be unchanged this week as there looks to be enough of an offset to downside risks to keep easing risks at bay for now.”
“And finally we have the Bank of England on Thursday, which is typically a bore as unchanged with no statement, but under the new schedule, we will now have the MPC vote and minutes released with the BoE decision. This should give us the most detailed glimpse into how G7 central banks are viewing global risks and will likely be scoured for how the Fed may be viewing the outlook, as well, given both are see close to tightening.”
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