Forex Flash: This week will give clearer picture of US recovery - Investec

FXstreet.com (Barcelona) - Investec Treasury analysts believe that this week will provide a clearer picture of the US recovery starting this Wednesday´s ISM survey, followed by the FOMC decision.

They see that the market is not pricing in a policy picture of the US recovery starting with Wednesday’s ISM survey followed by the FOMC rate decision. The market is not pricing in a policy change and indeed economists are noting that Fed officials are likely to continue with their accommodative monetary policy at their monthly meeting and in subsequent ones, given the weaker recent data and also because several recent inflation measures have fallen well below the Fed’s target. They write, “Wednesday’s ADP employment number will act as a precursor to the ever important US Non Farm Payrolls report released on Friday afternoon.” Given the under performance last month and the market’s immediate reaction, they expect a busy end to the week.