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22 May 2013
US Data – TD Securities
FXstreet.com (London) - Marcin Budkiewicz ,Strategist, Rates and FX Research, TD Securities notes that the only datapoint today will be existing home sales for April, where our -0.2% forecast is softer than the +1.2% that markets are looking for.
However, TD Securities teams explain that more important today will be the Fedspeak, with Bernanke’s semi-annual testimony at 3pm and the FOMC minutes from 1 May at 7pm (London time for both).
Adding, that given the particular emphasis of its symmetric policy bias in the last FOMC statement, which was a sharp reversal of the tone of the previous meeting (when the focus was on pivoting towards an exit from asset purchases), the market will be looking for evidence that the Fed’s concern about the weakening economic outlook has shifted the focus sufficiently away for near-term tapering. Their expectation is for the tone of the Minutes and the Chairman's remarks to remain dovish, reinforcing the symmetric policy bias.
However, TD Securities teams explain that more important today will be the Fedspeak, with Bernanke’s semi-annual testimony at 3pm and the FOMC minutes from 1 May at 7pm (London time for both).
Adding, that given the particular emphasis of its symmetric policy bias in the last FOMC statement, which was a sharp reversal of the tone of the previous meeting (when the focus was on pivoting towards an exit from asset purchases), the market will be looking for evidence that the Fed’s concern about the weakening economic outlook has shifted the focus sufficiently away for near-term tapering. Their expectation is for the tone of the Minutes and the Chairman's remarks to remain dovish, reinforcing the symmetric policy bias.