Forex Flash: US GDP and FOMC may add to EUR/USD strength - Commerzbank
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FXstreet.com (Barcelona) - Commerzbank analysts are somewhat pessimistic about the US GDP Q4 2012 data, expecting very subdued figures after the annualized 3.1% growth in Q3. "The consensus expects growth of 1.1% (annualised) and our economists are even more pessimistic (+0.8%)", wrote analyst Lutz Karpowitz, not expecting much from the US FOMC.
"The US central bankers will confirm that they plan to buy bonds worth US$ 85 bn each month. Even though US politicians have recently reduced the fiscal cliff - one of the problems which the Fed has repeatedly pointed out - the FOMC will continue its course", Karpowitz continued, explaining the trajectory due to still out of reach unemployment rate (6.5%) and inflation (2.5%) targets. "Any observers who hope for a less expansionary Fed policy will therefore be disappointed", he wrote, betting on a higher EURUSD.
"The US central bankers will confirm that they plan to buy bonds worth US$ 85 bn each month. Even though US politicians have recently reduced the fiscal cliff - one of the problems which the Fed has repeatedly pointed out - the FOMC will continue its course", Karpowitz continued, explaining the trajectory due to still out of reach unemployment rate (6.5%) and inflation (2.5%) targets. "Any observers who hope for a less expansionary Fed policy will therefore be disappointed", he wrote, betting on a higher EURUSD.
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