Minutes from FOMC September Meeting to Released on Wednesday
The report detailing the most recent convening of the Federal Open Market Committee of the US Federal Reserve is set to be issued tomorrow Wednesday 9 October 2013.
Analysts note that investors will likely be following this report closely as the FOMC has indicated in recent months that it is amenable towards stemming its role in stimulus activities. However due to the ongoing stalemate in Washington surrounding the debt ceiling and the budget, many experts may be worried that the current crisis may serve to affect the government?s role in the recovery. Analysts point in particular to the government?s ability to sell securities that it uses to fund the quantitative easing measures, which could be significantly affected by the possibility that the US may default to bond holders over its inability to raise the debt ceiling and borrow more money to pay off its debts.
While the minutes from the September 17-18 meetings may not cover the most recent developments with the standoff over the budget, it will likely be useful in providing investors with a clearer picture of the general direction that the FOMC is leaning towards which will have an effect on the future course of the US dollar.
UK Housing Prices on the Rise as Signals Point Towards Strengthening Pound
According to reports from 8 October 2013, the price of homes in the United Kingdom have risen to levels that have not been seen since 2002, leading many experts to reissue their opinions that the British economy is continuing its steady recovery.
Along with the rise in housing prices throughout most of the country, additional increases in the figures for UK manufacturing have also been recording, which will likely lead to additional job creation in that sector, helping to boost up economic stability.
As analysts have noted in the past, rising housing prices can be correlated with a strengthening economy as more consumers feel confident in their ability to make the large scale purchase of the durable good. This confidence is often directly related to the consumer?s belief that their job is secure and that the economy is such that it will support them through the process of becoming home owners. Moreover, the rising prices points to more demand, which speaks to the big picture rise in the state of the economy.
Analysts believe that the sterling will likely continue to strengthen against many of its rivals as these positive reports point to a path of economic recovery over the coming term.
AUD and CAD Losses Witnessed as Equities and Crude Drop Off in Global Markets
The Aussie and the loonie are said to have suffered losses in trading against their rival currencies due to market instability and dropping oil prices.
For its part, the Aussie is reported to have lost to the Yen which has enjoyed a rise as a haven asset as investors are seeking out alternatives to the struggling USD in light of the standoff in Washington. Compounding the volatility hitting the Aussie, the shaky equities markets have left many investors uneasy about placing their bets on the beleaguered currency until some semblance of stability begins to return.
In a continuation of the reports from yesterday concerning the decline in crude prices at the WTI, the CAD is also said to be among the losers as crude is Canada?s primary export and its economy is closely tied to the commodity. The drop in prices at the energy market stem from rising levels of supply as operations have resumed at the Gulf of Mexico facilities which as stated yesterday, had been affected by Hurricane Karen.
Analysts believe that many of the primary currencies that are generally traded on the world markets will likely struggle over the coming days as the US debt debate persists, adding volatility to the market.