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20 Mar 2013
Forex Flash: FOMC not expected to change pace of QE - BTMU
FXstreet.com (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ note that the FOMC concludes its two day meeting tonight and will release its revised economic forecasts as well.
He writes, “The FOMC’s tone should suggest that there will not be any imminent changes to the pace of QE, and we do not expect any huge deviations from the previous economic forecasts. The stronger than expected labour market may result in modest downward revisions to their unemployment rate forecasts, although the sequester government spending cuts could modestly lead to a downgrade to their GDP projection for this year. Any signal that the FOMC is moving closer to tapering the pace of asset purchases will help to support the strengthening US dollar.”
He writes, “The FOMC’s tone should suggest that there will not be any imminent changes to the pace of QE, and we do not expect any huge deviations from the previous economic forecasts. The stronger than expected labour market may result in modest downward revisions to their unemployment rate forecasts, although the sequester government spending cuts could modestly lead to a downgrade to their GDP projection for this year. Any signal that the FOMC is moving closer to tapering the pace of asset purchases will help to support the strengthening US dollar.”