Friday, October 9, 2015

FOMC lacking conviction, ECB highly dovish - ANZ

FXStreet (Guatemala) - Analysts at ANZ explained the outcome of the Central Banks overnight.

See here for recent price action in EUR/USD, (EUR/USD: taking a breather after ECB and FOMC volatility).

Key Quotes:

"The tone from the FOMC Minutes was slightly more dovish, although this wasn’t too surprising."

"Overall, the FOMC still see risks to the downside for US real GDP and inflation forecasts, with recent global growth and financial market developments exacerbating these downside risks. The Minutes also noted that low productivity and inflation growth was contributing to disappointing wages growth.

The ECB’s Minutes overnight also reaffirmed that the Governing Council continue to see risks to euro area growth and inflation skewed to the downside, and that the Bank will be prepared to act further if required. The Minutes also suggested that if growth prospects in emerging markets deteriorate further and financial market volatility becomes more entrenched, the Governing Council will be prepared to provide further stimulus to underpin activity in the euro area economy."

See here for recent price action in EUR/USD, (EUR/USD: taking a breather after ECB and FOMC volatility).
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