EUR Up on Strong PMIs, CHF Down on SNB Intervention Threats


Note  The table above is updated before publication with the latest consensus forecasts. However, the text charts are prepared ahead of time. Therefore there can be discrepancies between the forecasts given in the table above and in the text charts. 

Rates as of 0500 GMT

Market Recap

The results of the Federal Open Market Committee FOMC meeting were largely in line with expectations. They gave more specific guidance for their asset purchases but still left it vaguer than their guidance on interest rates. They also included some explanation of the reason for the asset purchases. They also left the amount of purchases and their composition unchanged, and Fed Chair Powell indicated in his press conference that these parameters are likely to remain unchanged, assuming the economy develops the way the Committee expects. Specifically, he said switching to a weighted average maturity target for their bond purchases was not something high on our list in terms of possibilities.

The statement following the meeting said the Federal Reserve will continue to increase its holdings of Treasury securities by at least 80 billion per month and of agency mortgagebacked securities by at least 40 billion per month until substantial further progress has been made toward the Committees maximum employment and price stability goals. These asset purchases help foster smooth market functioning and accommodative financial conditions This compares with their pledge to keep rates unchanged…

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