News Headline Summary

Following the latest comments from Fed's Bullard, which were generally less dovish than the tone of the FOMC and Chairman Bernanke on Wednesday, USD is seen to strengthen, with fixed income coming under pressure...

Update details:

- 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.

Reaction details:

- 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.

Print 12:10, 20 Sep 2013 - Market Analysis - Source: RANsquawk