Talking Points:
• Top event risk last week was the Fed's decision to hold rates, but that doesn't exactly rally investors
• Risk aversion in the face of more time at the stimulus trough can set up a trouble view for markets
• Another consideration is how other central banks may attempt to 'compensate' for the Fed's retreat
Find out what live events and webinars are scheduled this week with the DailyFX Live Webinar Calendar !
Chief Strategist John Kicklighter discusses the top Forex fundamental themes for the coming week of trading. The market reaction to the biggest event risk this past week - the FOMC rate decision - will not be contained to that short period. A long-standing relationship between monetary policy and investor sentiment is plotting the shift in central bank support after it has fed speculative excess for years. Despite the US central bank offering more time at zero rates though, investors didn't seem to be soothed. Should sentiment continue to recede, other major central banks are likely to step in to compensate the FOMC's absence with support of their own. Who are the central banks most likely to act, how are risk trends shaping up post-Fed and what other key event risk is on the docket this week. These fundamental themes were discussed in this week's webinar.
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