11 Jul 2013
Flash: Tapering ins’t tightening – Societe Generale
FXstreet.com (London) - Kit Juckes, Global Head of Currency Stratergy for Societe Generale said the FOMC minutes had set the stage.
He said they had done so by giving us a re-run of the message that had been delivered in the post-meeting press conference and do nothing to alter a view that ‘tapering’ will be announced in September. “What I heard from Bernanke was that tapering isn’t tightening (Wow!), that policy will remain very accommodative for a very long time, and that higher yields could alter taper-timing. I don’t see that as a radical but it has put a ceiling above yields for now, and markets can revert to data-watching mode”.
He said they had done so by giving us a re-run of the message that had been delivered in the post-meeting press conference and do nothing to alter a view that ‘tapering’ will be announced in September. “What I heard from Bernanke was that tapering isn’t tightening (Wow!), that policy will remain very accommodative for a very long time, and that higher yields could alter taper-timing. I don’t see that as a radical but it has put a ceiling above yields for now, and markets can revert to data-watching mode”.