Forex Technical & Market Analysis FXCC Sep 17 2013

[alayoua]

[b]Forex Technical & Market Analysis FXCC Sep 17 2013

The Fed to maintain forward guidance with firm tone, says Hilsenrath

The Federal Reserve is struggling to justify extending forward guidance as part of its strategy to maintain the recovery path according to Fedwatcher Jon Hilsenrath in his latest article on the FOMC policy meeting. The FOMC is expected to publish its interest rate and monetary policy decision on Wednesday September 18 and market is widely expecting the Fed to start its cut in the bond buying program. The Fedwatcher affirmed in his piece that "Federal Reserve officials face a communication challenge explaining their interest-rate plans when they gather for a policy meeting this week."

Their challenge is "how to justify the low interest-rate plan when their own estimates suggest an economy regaining its health." According to Hilsenrath, Fed forecasts could show "rates rising but still low" by 2016. The Fed also expects economy at "full employment" by the same year. The decision on QE tapering the $85 billion-a-month bond-buying program is now a close call "on whether to start pulling back on the QE." The Fed is now changing its emphasis from bond buying to the "low-rate pledge."


FOREX ECONOMIC CALENDAR :
2013-09-17 08:30 GMT : UK Consumer Price Index (YoY) (Jul)
2013-09-17 09:00 GMT : EMU ZEW Survey - Economic Sentiment (Aug)
2013-09-17 12:30 GMT : US Consumer Price Index (YoY) (Aug)
2013-09-17 13:00 GMT : US Net Long-Term TIC Flows (Jul)

FOREX NEWS :
2013-09-17 05:29 GMT : NZD/USD downwards in tandem with