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16 Sep 2013
Flash: Tapering will support the dollar longer-term - UBS
FXstreet.com (Barcelona) - As Mansoor Mohi-uddin, Head of FX at UBS Macro Research, notes, the key event this week is the Federal Open Market Committee meeting, with the policy statement at 2.00pm EST on Wednesday.
Key Quotes
"The focus of the market's attention is whether the Federal Reserve will agree to start slowing down its current $85bn a month pace of asset purchases."
"UBS Economics expects the FOMC will announce a $10bn cut in bond buying from the start of October. That seems to be the consensus view now of investors despite the weaker than expected August payrolls data."
"Any dovish surprise from the FOMC in changing its forward guidance should be seen as a longer-term buying opportunity for the greenback. The Fed is likely to continue cutting asset purchases at successive FOMC meetings and remains set to be the first major central bank to exit unconventional monetary policy."
Key Quotes
"The focus of the market's attention is whether the Federal Reserve will agree to start slowing down its current $85bn a month pace of asset purchases."
"UBS Economics expects the FOMC will announce a $10bn cut in bond buying from the start of October. That seems to be the consensus view now of investors despite the weaker than expected August payrolls data."
"Any dovish surprise from the FOMC in changing its forward guidance should be seen as a longer-term buying opportunity for the greenback. The Fed is likely to continue cutting asset purchases at successive FOMC meetings and remains set to be the first major central bank to exit unconventional monetary policy."