Fundamental Analysis Insights(Wednesday News ONLY):
Fed decision:
The Fed is expected to announce the beginning of Quantitative Tightening or the beginning of reducing
its 4.5 trillion dollar balance sheet. Fed Chair Janet Yellen said it will be akin to “watching paint dry” and
in any case, that will not be a surprise after the Fed talked about it for long months.
The focus will be on the timing of the next interest rate hike. Will it happen in December, completing three
hikes in 2017? Or has recently weak inflation undermined the chances? This is the big question for skeptical
markets and the US dollar.
The Fed will also release updated forecasts for growth, employment, and inflation. The biggest focus will be
on the interest rate forecast, which will contain hints about future moves. Yellen will begin speaking at 1:30pmCST.
Reporters will likely press her on the next rate hikes. The usual phrase about the Fed being “data dependent”
will probably be heard more than once, but the general stance about the economy will set the tone.
Other topics of interest will be comments about the stock market, the global economy, and oil prices. Markets
could freeze just before the publication and go wild afterward.
New Zealand GDP:
The economy of New Zealand grew by a solid 0.5% q/q in Q1. At last, the nation publishes its Q2 2017 figures.
Further growth is on the cards 0.8% is forecast. The data will also feed into the tight election campaign which
culminates in the vote on September 23rd.
Japanese Rate Decision:
Thursday, early morning, the exact time is unavailable. The Bank of Japan is not really successful in achieving
the 2% inflation goal, to say the least. The future of Governor Kuroda also hangs in the balance. The BOJ is
unlikely to change its policy now: holding 10-year yields at 0%. They are probably pleased with the most recent
weakening of the Japanese yen.
Fed decision:
The Fed is expected to announce the beginning of Quantitative Tightening or the beginning of reducing
its 4.5 trillion dollar balance sheet. Fed Chair Janet Yellen said it will be akin to “watching paint dry” and
in any case, that will not be a surprise after the Fed talked about it for long months.
The focus will be on the timing of the next interest rate hike. Will it happen in December, completing three
hikes in 2017? Or has recently weak inflation undermined the chances? This is the big question for skeptical
markets and the US dollar.
The Fed will also release updated forecasts for growth, employment, and inflation. The biggest focus will be
on the interest rate forecast, which will contain hints about future moves. Yellen will begin speaking at 1:30pmCST.
Reporters will likely press her on the next rate hikes. The usual phrase about the Fed being “data dependent”
will probably be heard more than once, but the general stance about the economy will set the tone.
Other topics of interest will be comments about the stock market, the global economy, and oil prices. Markets
could freeze just before the publication and go wild afterward.
New Zealand GDP:
The economy of New Zealand grew by a solid 0.5% q/q in Q1. At last, the nation publishes its Q2 2017 figures.
Further growth is on the cards 0.8% is forecast. The data will also feed into the tight election campaign which
culminates in the vote on September 23rd.
Japanese Rate Decision:
Thursday, early morning, the exact time is unavailable. The Bank of Japan is not really successful in achieving
the 2% inflation goal, to say the least. The future of Governor Kuroda also hangs in the balance. The BOJ is
unlikely to change its policy now: holding 10-year yields at 0%. They are probably pleased with the most recent
weakening of the Japanese yen.
Have an INVESTOR Mindset, but Trade like an ENTREPRENEUR