News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Forex: The Fed Taper Proves Dollar Bullish, Eventually Risk Bearish

Forex: The Fed Taper Proves Dollar Bullish, Eventually Risk Bearish

John Kicklighter, Chief Strategist

Talking Points:

• The Federal Reserve surprised most market participants with a $10 bln Taper and warning of further moves

• With the central bank turning a corner on its ever-expanding stimulus program, the dollar rallied

• Risk trends (like S&P 500) didn't drop though as the liquidity drain curbs volatility...but it will

Sign up for DailyFX-Plus to have access to Trading Q&A's, educational webinars, updated speculative positioning measures, trading signals and much more!

The Fed surprised many with a Taper to end the year. We were met with a swell in price volatility and an eventual dollar rally - as expected. Yet, many were perplexed to also see a significant rally for the S&P 500 and generally robust position on risk trends. Is the Fed's support simply not important to driving markets higher anymore? Did the upgraded growth forecasts handily replace optimism amongst investors? Or perhaps this jump in risk is simply a side effect of seasonal fade in liquidity. We discuss this important event, the implications for dollar and risk trends, as well as the trade options in today's Trading Video.

Sign up for John’s email distribution list, here.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES