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9 Sep 2013
Flash: Payrolls leaves doors open, USD – Societe Generale
FXstreet.com (London) - Kit Jukes, Global Head of Currency Strategy at Societe Generale notes the implications of NFP's.
Key Quotes:
“Last Friday's US Labor report leaves the Fed on track to announce a small reduction in the pace of bond purchases at next weeks' FOMC meeting”.
“The fed wants to have finished ‘tapering' by the time the unemployment rate gets below 7% and on the current pace of decline, that is going to happen by around April of next year so they need to get their skates on”.
“There are howls of protest from those who think the economy is too weak to stand without the QE crutch, but the Fed response will be that ‘tapering isn't tightening' repeated as often as it takes to calm bond market nerves”.
Key Quotes:
“Last Friday's US Labor report leaves the Fed on track to announce a small reduction in the pace of bond purchases at next weeks' FOMC meeting”.
“The fed wants to have finished ‘tapering' by the time the unemployment rate gets below 7% and on the current pace of decline, that is going to happen by around April of next year so they need to get their skates on”.
“There are howls of protest from those who think the economy is too weak to stand without the QE crutch, but the Fed response will be that ‘tapering isn't tightening' repeated as often as it takes to calm bond market nerves”.