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Markets wait for Bernanke
It's all about the central banks.
Investors play the waiting game ahead of the FOMC.
Gold range bound between USD1,340 and USD 1,360 as the market awaits the outcome of the meeting. Market analysts expect the central bank to keep its USD85 billion-a-month asset purchase program on track in order to safeguard the faltering economic recovery.
The Conference Board said earlier that its index of consumer confidence dropped to 71.2 in October from an upwardly revised reading of 80.2 in September, as concerns over the U.S. government shutdown and the debt ceiling crisis weighed.
The New Zealand dollar dropped in late trading after a Moody’s Investors Service executive discussed stripping the country of its AAA credit rating. New Zealand’s reserve bank governor is expected to keep the official cash rate at a record low of 2.5 percent when he reviews monetary policy tomorrow.
The yen weakened against all its major peers on prospects the Bank of Japan will say it plans to continue buying more than 7 trillion yen in bonds each month to end deflation.
Deputy Governor Iwata says the BOJ will continue to buy bonds until it achieves its 2 percent inflation target. He says the country’s monetary and fiscal policies are at a critical point for ending deflation, he said. Policy makers hold a one-day meeting on Oct. 31.
Twice a year the Bank of Japan releases an update to its three-year forecast for economic growth and prices. The last one was back in April, and we get the latest tomorrow: Most attention will be focused on the bank's forecast for the core consumer price index for the fiscal year ending in March 2016.
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