31 Jul 2013
Flash: Countdown to FOMC – BMO Capital Markets
FXstreet.com (New York) - The biggest event for the week is today’s FOMC decision. The FOMC’s statement will be released at 2:00 PM EDT – this meeting will not include an update to published economic forecasts or an associated Bernanke press conference, notes Greg Anderson, Global Head of FX Strategy at BMO Capital Markets.
Key quotes
“FX markets enter the event moderately long of USD across the board, but nearly as long as they were at the start of the month. Those that remain long of USD are mostly medium-to-long term investors. So-called ‘fast money’ FX investors appear to be on the sidelines headed in to this event.”
“With that in mind, the price response should in theory be ‘true’ to the event. In practice, there is always the chance of a whipsaw caused by someone holding a transaction for the liquidity window following the announcement.”
Key quotes
“FX markets enter the event moderately long of USD across the board, but nearly as long as they were at the start of the month. Those that remain long of USD are mostly medium-to-long term investors. So-called ‘fast money’ FX investors appear to be on the sidelines headed in to this event.”
“With that in mind, the price response should in theory be ‘true’ to the event. In practice, there is always the chance of a whipsaw caused by someone holding a transaction for the liquidity window following the announcement.”