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14 Jun 2013
Flash: Flashpoint brewing in Syria? – Deutsche Bank
FXstreet.com (New York) - “Briefly touching on the current geopolitical headlines, it has become increasingly likely since late yesterday that the US involvement in the Syria conflict may expand.” notes Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank.
Indeed, a recent article in the Wall Street Journal suggests that the US military is considering a proposal to arm Syrian rebels, together with the establishment of a 25-mile no-fly zone that would be enforced from Jordanian territory. U.S. military officials believe it will take about a month to get such a limited no fly zone up and running, but the situation could be complicated if Russia decides to provide advanced S-300 air defense weapons to Syria.
Turning to the day ahead, “we suspect that further reaction to the tapering debate and positioning ahead of next week's FOMC meeting will be the predominant theme.” they add. In terms of data, the preliminary University of Michigan consumer sentiment reading for June is scheduled for today (consensus is for it to be unchanged at 84.5). US industrial production for May and the US current account balance for Q1 are also scheduled.
Indeed, a recent article in the Wall Street Journal suggests that the US military is considering a proposal to arm Syrian rebels, together with the establishment of a 25-mile no-fly zone that would be enforced from Jordanian territory. U.S. military officials believe it will take about a month to get such a limited no fly zone up and running, but the situation could be complicated if Russia decides to provide advanced S-300 air defense weapons to Syria.
Turning to the day ahead, “we suspect that further reaction to the tapering debate and positioning ahead of next week's FOMC meeting will be the predominant theme.” they add. In terms of data, the preliminary University of Michigan consumer sentiment reading for June is scheduled for today (consensus is for it to be unchanged at 84.5). US industrial production for May and the US current account balance for Q1 are also scheduled.