USD: Minutes from FOMC can be the highlight of a slow week
After a quiet start to the week, given the US public holiday on Monday and the New Year in China, the attention will return to US stimulus prospects and what the Fed is going to do about it. Before moving to a full voting week starting on 22 February, the stimulus package will still be in the committee process this coming week. The passing of the plan is seen as relatively smooth, implying that US equities remain supported by dips. As far as the Fed's response is concerned, Wednesday will see the publication of the FOMC minutes. There is a small risk of disturbance in the bond market if 'a few participants' wish to debate the acceptable timing of the removal of stimulus, but it seems obvious from Powell's statements that this is far too early to be addressed. January retail sales and industrial production should come on the strong side on the data front, maybe pushing the dollar to its highest levels from Wednesday to Thursday of the week. The frenzy of US retail investors should also come into view again. Thursday sees key GameStop volatility participants testify to the Financial Services Committee of the House.
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