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17 Jun 2013
Flash: Markets looking for a dirction – TD Securities
FXstreet.com (London) - Alvin Pontoh, stratergist at TD Securities said that in a quiet start to the week, markets look ahead to Wednesday’s FOMC meeting for direction.
“Last week’s bond market rally has lost momentum, and yields have crept up across Asia-Pac rates markets today, with Australian 10y yields rising +3bp on little or no catalyst. Risk assets are well bid with most equity markets up and commodity currencies AUD and NZD outperforming their regional peers. Meanwhile, INR has depreciated 0.5% against the USD ahead of the RBI decision due shortly”.
As mentioned, he said that the FOMC is the focus of the week ahead—he believe’s Bernanke will signal that the outlook is improving sufficiently to justify consideration of a slowing in the pace of QE later this year. Other highlights he noted are to include eurozone flash PMIs (Thu), the Norges Bank decision (Thu), and the BOE Minutes (Wed).
“Last week’s bond market rally has lost momentum, and yields have crept up across Asia-Pac rates markets today, with Australian 10y yields rising +3bp on little or no catalyst. Risk assets are well bid with most equity markets up and commodity currencies AUD and NZD outperforming their regional peers. Meanwhile, INR has depreciated 0.5% against the USD ahead of the RBI decision due shortly”.
As mentioned, he said that the FOMC is the focus of the week ahead—he believe’s Bernanke will signal that the outlook is improving sufficiently to justify consideration of a slowing in the pace of QE later this year. Other highlights he noted are to include eurozone flash PMIs (Thu), the Norges Bank decision (Thu), and the BOE Minutes (Wed).