Dollar, Treasuries Respond to US Data Support of QE3 Taper
We may be three weeks away from the Federal Reserve's next rate decision, but the market is clearly speculating on the hotly debated QE3 taper now. This past session, the dollar pushed higher to multi-year highs, the S&P 500 suffered a quick intraday retracement and US Treasuries plunged to 13-month lows on positive US consumer sentiment news. Why would an encouraging piece of economic data weigh US equities and bonds? Because it bolsters support for the Fed to ease back its stimulus effort. We discuss the implications of this market-wide stimulus and risk-trend move on AUDUSD, EURUSD, equities, and yen crosses amongst other setups in today's video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.