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23 Sep 2013
Flash: Drivers for the Week Ahead-BBH Global Currency Strategy Team
FXstreet.com (Athens)- Marc Chandler the Global Head of BBH Currency Strategy suggests that the market still lacks closure on both the German election outcome and US fiscal policy, two key points of interest for investors.
Key Quotes
“A Grand Coalition between the CDU and SPD still appears to be the most likely outcome, but a CDU-Green coalition is possible, though a little less likely. The Fed's decision not to taper last week does not exactly put monetary policy on the back burner.”
“We do not think an October tapering is very likely. We also remain concerned that the Fed's forward guidance is compromised by the forthcoming personnel changes. Meanwhile, the Fed's Fixed Rate Full Allotment Reverse Repo program trial beings today. However, it is the US fiscal policy that is rivaling monetary policy for attention.”
“The HSBC flash manufacturing PMI for China solidifies the sense that the world's second largest economy has not only stabilized, but is turning higher. Japan's inflation data is released at the end of the week, but the focus is shifting from monetary policy toward fiscal policy.”
Key Quotes
“A Grand Coalition between the CDU and SPD still appears to be the most likely outcome, but a CDU-Green coalition is possible, though a little less likely. The Fed's decision not to taper last week does not exactly put monetary policy on the back burner.”
“We do not think an October tapering is very likely. We also remain concerned that the Fed's forward guidance is compromised by the forthcoming personnel changes. Meanwhile, the Fed's Fixed Rate Full Allotment Reverse Repo program trial beings today. However, it is the US fiscal policy that is rivaling monetary policy for attention.”
“The HSBC flash manufacturing PMI for China solidifies the sense that the world's second largest economy has not only stabilized, but is turning higher. Japan's inflation data is released at the end of the week, but the focus is shifting from monetary policy toward fiscal policy.”