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Forex pairs in this Article » EUR/USD (Barcelona) - Following comments by St. Louis Fed President Bullard on Friday, saying the Oct 30-31 FOMC will be a "live" meeting and adding "it's possible you could get some data that change the complexion of the outlook and could make the committee comfortable with a small taper in October", in view of UBS FX Strategist Gareth Berry, the Jan FOMC is still a more likely occasion to start tapering.

Key Quotes

"It seems unlikely to us that the Fed would choose to act only six weeks after an unchanged policy decision, and the consensus agrees."

"Admittedly, by then the FOMC will have had the benefit of seeing another payrolls report, several more weeks of jobless claims data, another JOLTS report, the first estimate of Q3 GDP, two durable goods readings, more housing data and retail sales."

"But fiscal issues around the debt ceiling may still not be resolved and this was a key factor in the Fed's decision to remain on hold last week. Consequently, UBS Economics thinks that the Jan FOMC is a more likely occasion for tapering to get underway."

"All things considered, we expect last week's FOMC meeting will keep the dollar weak for one quarter before its longer-term uptrend can resume. So we revised our short term forecasts across the board overnight. We raised our 1m and 3m EURUSD forecasts to 1.37 and 1.35 respectively (from 1.30 and 1.28 before)."
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