31 Jul 2013
Flash: It's all about the timing of Fed taper - HSBC
FXstreet.com (Barcelona) - In today's FOMC meeting there will be no press conference after the meeting, which is a bit of a downer for all those volatility lovers out there. Only the release of the Committee's policy statement will be published.
According to HSBC FX Team: "It is possible that the policy statement issued will include an explicit indication that the pace of asset purchases will be reduced sometime later this year. Incoming data will have a bearing on whether the tapering of QE starts in September or is delayed until December, this will be crucial for all markets."
The question now, as seen by HSBC, is how to prepare markets for the event and to decide when to start tapering: "The pace of tapering may vary as the FOMC reacts to incoming data, but the policymakers will still have their eye on June 2014 as the likely end date for this episode of QE" the bank said. "If they once again focus on data dependency then Friday’s payrolls will be key."
According to HSBC FX Team: "It is possible that the policy statement issued will include an explicit indication that the pace of asset purchases will be reduced sometime later this year. Incoming data will have a bearing on whether the tapering of QE starts in September or is delayed until December, this will be crucial for all markets."
The question now, as seen by HSBC, is how to prepare markets for the event and to decide when to start tapering: "The pace of tapering may vary as the FOMC reacts to incoming data, but the policymakers will still have their eye on June 2014 as the likely end date for this episode of QE" the bank said. "If they once again focus on data dependency then Friday’s payrolls will be key."