Bank of Tokyo-Mitsubhisi - (...) Next week the key event for the dollar generally is the FOMC monetary policy decision. Today’s weaker than expected non-farm payrolls report reinforces the Fed’s thinking expressed in the minutes of its last meeting, released on 22nd August. Hence, QE3 is a high possibility next week but we maintain that the program will much more conditional on incoming data than QE1 and QE2. Hence, a commitment to purchase meeting to meeting is more likely, which will help contain dollar selling.
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