Following Friday's
'blockbuster' jobs report, November 6th, 2015, the markets are finally
coming around to taking the FED seriously once again. The Dollar Index
had enjoyed a steady and a strong rally for the past 18 months, since
July of 2014 as the Federal Reserve started to communicate to the
markets, its intention to wind down the massive Quantitative Easing or
QE3 involving purchasing Mortgage Backed Securities and US treasuries to
the tune of $85 billion.
The FED’s intention to take away the 'Punch
bowl' in the aftermath of the 2008 Global Financial Crisis was met with
a lot of doubt, with most of the markets expecting the FED to only come
back with more QE. However, as the FED started to slowly wind down its
purchases by $10 billion since December 2013, the US Dollar started to
rise steadily. (more)
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