Don’t rule out fireworks from the FOMC October meeting - TDS

FXStreet (Delhi) – James Rossiter, Senior Global Strategist at TD Securities, suggests that without updated economic projections and an accompanying press conference, the bar for action at the October FOMC meeting is much higher than in September and December.

Key Quotes

“Only if the economic data had improved materially versus the Fed’s updated expectation outlined in September would a hike next week be warranted. Instead, the exact opposite scenario has unfolded: 15Q3 GDP growth is now expected to decelerate below its trend rate (TD: 1.8%, markets: 1.7% q/q) as weak exports and an inventory correction weigh on the headline (final domestic demand growth should remain strong, though) and the labour market was dealt a blow from a discouraging September nonfarm employment report.”