Finally the big FOMC meeting is over and the craziness of
the markets last night have now consolidated.
So what exactly happened?
Fed announced the next round of QE2 of a purchase of $600 bn
of long-term treasuries by the end of Q2 2011. There were no real changes of
growth or inflation risk and it was this disappointment that drove the policy
change.
US October ISM non-manufacturing came in better than
expected at 54.3 vs consensus 53.5. The USD September factory orders were also
above expectations at +2.1% vs consensus 1.6%.
We saw the Aussie, Euro and sterling climb up last night. Will
have to watch out though for Europe open and
today’s data to figure out where the market is heading.
Data today:
German PMI services – 9am GMT
Eurozone PPI – 10am GMT
European central bank rate decision – 12.45pm GMT
Bank of England Annouces rates and asset purchase rate – 12pm
GMT
US initial jobless claims – 12.30pm
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