8 Nov 2013
Flash: March for tapering - Rabobank
FXstreet.com (London) - The Financial Markets Research team at Rabobank said this year has been one of mixed fortunes across the board. Up until Fed Chairman Bernanke’s speech on May 22nd when he noted that the Fed might start tapering QE.
Key Quotes:
“This year has been one of mixed fortunes across the board. Up until Fed Chairman Bernanke’s speech on May 22nd when he noted that the Fed might start tapering QE, global tide of liquidity and diminished tail-risk of a Eurozone break-up caused price action to follow the Great Flotation price dynamic. This saw risky assets better bid as investors hunted for yield across the board”.
“Indeed, the question of when and how quickly the Fed will begin tapering QE is the main driver of price action across markets at present and it is likely to remain the dominant theme for some time to come”.
“We currently see March as the most likely juncture for the first decrease in the pace of asset purchases in the US but we expect that the new Fed Chairperson, Yellen, will take a somewhat cautious approach and that tapering will occur at a relatively slow pace”.
Key Quotes:
“This year has been one of mixed fortunes across the board. Up until Fed Chairman Bernanke’s speech on May 22nd when he noted that the Fed might start tapering QE, global tide of liquidity and diminished tail-risk of a Eurozone break-up caused price action to follow the Great Flotation price dynamic. This saw risky assets better bid as investors hunted for yield across the board”.
“Indeed, the question of when and how quickly the Fed will begin tapering QE is the main driver of price action across markets at present and it is likely to remain the dominant theme for some time to come”.
“We currently see March as the most likely juncture for the first decrease in the pace of asset purchases in the US but we expect that the new Fed Chairperson, Yellen, will take a somewhat cautious approach and that tapering will occur at a relatively slow pace”.