Bank of Tokyo-Mitsubhisi - USD – bearish bias (DXY: 79.200-82.000)

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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Tags: DXY, Fed, QE, QE3, USD, USD Index

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