Wednesday, January 29, 2014

What did the Fed do and Why Does it Matter?




Summary: The US Federal Reserve announced a fresh $10 billion in “Taper” of its Quantitative Easing. Why does it matter and what does it mean for markets?



- US Federal Reserve announced a fresh $10B in Taper at its meeting



- Market reactions have thus far been mixed, but S&P 500 has fallen sharply



- Will be critical to watch next moves in Emerging Markets and key Dollar pairs



View the video and article above for a full rundown of the Fed’s actions. Follow any updates on the US Dollar and other currencies via this author’s e-mail distribution list.



Forex Correlations SummaryView forex correlations to the S&P 500, S&P Volatility Index (VIX), Crude Oil Futures prices, US 2-Year Treasury Yields, and Spot Gold prices.


forex_rundown_of_what_the_FOMC_has_done_body_Picture_5.png, What did the Fed do and Why Does it Matter?


Data source: Bloomberg. Chart source: R SEE GUIDE ON READING THE ABOVE CHART



Written by David Rodriguez, Quantitative Strategist for DailyFX.com David specializes in automated trading strategies. Find out more about our automated sentiment-based strategies on DailyFX PLUS.



Contact and follow David via Twitter: https://twitter.com/DRodriguezFX





What did the Fed do and Why Does it Matter?

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