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Fed's Williams reminds the market about QE end risk

FXstreet.com (Barcelona) - Despite the USD saw a retracement on weaker data, Fed’s dove Mr. Williams stepped in to remind the market that risks in the USD remain skewed to the upside after saying the Fed could reduce pace of asset purchases as early as this summer, and end them by year’s end, sounding confident that indications point towards continued labor market gains.

Some of the most relevant headlines from Mr. Williams were that the jobs market has improved considerably since QE3, as stated above, although was reserved by adding that further job creation is needed before he is convinced about ending QE. In terms of the jobless rate, he doesn’t expect the figures to fall below 6.5% until mid-2015

He said that fears of deflation are overdone, and that decrease in prices should be temporary, although expected to be capped below 2% in the next few years. He remains confident the Fed will succeed in exiting QE.

EUR/USD hurt by QE comments; Ready to fall?

The Euro was unable to hold the 1.2900 level against the Greenback and following the Fed's Williams comments on the Fed tapering the QE as soon as the summer and finishing it by the year-end, the EUR/USD closed Thursday's session at 1.2885.
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Flash: USD gains to be far bigger in H2 – Societe Generale

Following recent surge in USD posting a fresh 20-month high yesterday at 84.09, “A pause may be due,” says Head of Rates and FX Strategy at Societe Generale, Vincent Chaigneau, “but recent moves confirm the shape of things to come: dollar gains will be far bigger in H2, as the Fed exit debate heats up,” he adds.
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