USD/JPY volatility rises more on FOMC days than EUR or GBP - RBNZ meets to decide on its key interest rates

•      To QE or to QE…Pre-FOMC uncertainty dominates market

•      There is no press conference following the rate decision and no updates in economic projections, thus not many changes are expected in Oct. statement.

•      The Committee may choose the December meeting to re-examine more comprehensively the forward guidance language

•      Key point to watch: Does statement still include the “considerable time” phrase?

•      Following the comments by St. Louis Fed President James Bullard that the Fed should consider continuing with its bond-buying program, a continuation could not be ruled out

•      USD/JPY volatility rises more on FOMC days than EUR or GBP

•      RBNZ meets to decide on its key interest rates

•      The Bank is expected to leave its policy rate unchanged

•      Governor Graeme Wheeler could reiterate the view that the exchange rate current level remains “unjustified and unsustainable”.

•      A dovish tone and emphasis on the low Q3 inflation rate released last week, could weaken NZD

•      Today:

•      Eurozone: French consumer confidence for October

•      Sweden: Economic tendency survey for October; decline in the Survey could prove SEK-negative

•      UK: mortgage approvals for September

•      Norway: AKU unemployment rate for August and retail sales for September