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20 Sep 2013
Flash: Caution Sterling traders; Fed to hold investors hands – BMO
FXstreet.com (London) - Stephen Gallo, Head of European FX Strategy at BMO sights the week ahead with the impact of the Fed in mind and data dependent market positioning.
Key Quotes:
“The Fed speak is clearly there to hold the hands of investors every step of the way, depending on what the data tell us. Central banks are setting policy entirely in ‘real-time’”.
“The impact of the Fed’s actions this week will be magnified next week if the Euro Area PMIs surprise to the upside by two or three points. We therefore think the bigger moves, if any, will occur topside in EUR/USD rather than downside”.
“Additionally, Last week’s bigger-than-anticipated downside retail sales print for the UK should force participants to trade the GBP a bit more cautiously on the topside than during the previous two weeks in our opinion”.
Key Quotes:
“The Fed speak is clearly there to hold the hands of investors every step of the way, depending on what the data tell us. Central banks are setting policy entirely in ‘real-time’”.
“The impact of the Fed’s actions this week will be magnified next week if the Euro Area PMIs surprise to the upside by two or three points. We therefore think the bigger moves, if any, will occur topside in EUR/USD rather than downside”.
“Additionally, Last week’s bigger-than-anticipated downside retail sales print for the UK should force participants to trade the GBP a bit more cautiously on the topside than during the previous two weeks in our opinion”.