Tomorrow brings the Fed, and Friday brings Non-farm Payrolls, so we’re in the midst of some heavy drivers for the USD.
It’s long been expected that this is the rate decision at which the Fed will announce their intentions to begin tapering asset purchases. Many market participants were looking for that announcement at the September rate decision. Instead, Powell said that the ‘significant further progress’ that the bank wanted to see hadn’t yet been met on the employment front even though inflation was sticking above 5%. Powell said the bank was ready to make that taper announcement soon provided that employment data didn’t massively disappoint, and global markets largely inferred that to mean ‘November.’
