Fed policy meeting tonight
At 7.00pm today we will have the Federal Reserve press conference in which they announce their decision on policy, such as interest rates and stimulus. The market is expecting (and has priced in) a $10bn reduction in the monthly stimulus package – this being referred to as tapering as they gradually reduce, or taper the amount of stimulus put into the US economy.
Any deviation from this $10bn figure will impact USD; if for any reason there is no further reduction in the stimulus we could see USD weaken rapidly. And of course if there is more than expected then we could see USD strengthen rapidly.
That aside, we have Mark Carney speaking today, specifically questioning the Scottish proposal to keep the British Pound, should the country vote for independence – whilst this specific subject is unlikely to influence exchange rates, as we saw at the end of last week, any public appearance for the governor leaves the door open for a comment that may impact GBP.