Reaction details (07:21)
- The strength in EUR against USD that followed the announcement of a far larger LTRO repayment than expected earlier in the session, has now been pared, with EUR/USD now in negative territory at 1.3510 (-18 pips) last. Bund futures had already seen losses following the LTRO announcement, and the Bullard comments have resulted in steepening of the European curve.
- USD strength has weighed on the commodities complex, with both WTI and gold trading in the red.
Analysis details (07:15)
- Of note, Bullard said the decision between tapering and not tapering was a 'borderline' decision and no taper or a USD 10bln taper was 'not a big thing'.
- Many analysts have said a forecast will not take place in October, given that there is no scheduled press conference after the meeting. However, Bullard suggested a press conference could now take place after that meeting.
20 Sep 2013 - 07:08 - - Source: RANsquawk
RANsquawk provides audio news and commentary for over 15,000 professional traders and brokers worldwide. Services include: