6 Apr 2015
RBA policy decision, FOMC minutes key focus
FXStreet (Bali) - For the upcoming week, central bank meetings will dominate traders' attention, with the RBA the only meeting that can realistically bring about some changes in policy, in the form of another rate cut, following February's initiation of a fresh easing campaign.
According to Nomura's Economist Franklin Wang: "The RBA is the only central bank meeting potentially eventful. We expect no change in its cash rate in this meeting and a 25bp cut on 5 May 2015, in line with market consensus. However, we flag that the risk of an April cut has risen materially due to the slide in iron ore prices."
The Fed will publish its March meeting minutes on Wednesday, with Wang noting that "the minutes should provide insight into the changes in the FOMC statement and economic and interest rate projections."
"The FOMC dropped its ‘patient’ language and opened the door to considering changes to its interest rate targets on a meeting-by-meeting basis starting in June", Nomura's Economist added.
An additional take on the upcoming FOMC minutes was provided by Brian Daingerfield, FX Trading Strategist at RBS, saying "that the commentary on the USD is likely to be notable. The minutes may also further some of the commentary of Chair Yellen about the “thresholds” that may be seen for the Fed to gain or lose reasonable confidence."
German industrial production on Thursday, UK industrial output on Friday and Chinese CPI on Friday are the other events worth keeping an eye on.
According to Nomura's Economist Franklin Wang: "The RBA is the only central bank meeting potentially eventful. We expect no change in its cash rate in this meeting and a 25bp cut on 5 May 2015, in line with market consensus. However, we flag that the risk of an April cut has risen materially due to the slide in iron ore prices."
The Fed will publish its March meeting minutes on Wednesday, with Wang noting that "the minutes should provide insight into the changes in the FOMC statement and economic and interest rate projections."
"The FOMC dropped its ‘patient’ language and opened the door to considering changes to its interest rate targets on a meeting-by-meeting basis starting in June", Nomura's Economist added.
An additional take on the upcoming FOMC minutes was provided by Brian Daingerfield, FX Trading Strategist at RBS, saying "that the commentary on the USD is likely to be notable. The minutes may also further some of the commentary of Chair Yellen about the “thresholds” that may be seen for the Fed to gain or lose reasonable confidence."
German industrial production on Thursday, UK industrial output on Friday and Chinese CPI on Friday are the other events worth keeping an eye on.