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18 Oct 2013
Flash: Fed QE taper March 2014 not out of question - TDS
FXstreet.com (Barcelona) - On the taper issue, Shaun Osborne Chief FX Strategist, believes on the clear prospect that the Fed is sidelined for even longer now.
Key Quotes
"Policymakers (even the hawks) have indicated that an October taper is unlikely due to the shutdown. We have penciled in January as the likely start to the Fed tapering but March is not out of the question. If the Fed is expected to keep policy stimulus in place for longer, risk assets are likely to outperform in the next few months."
"Seasonal factors turn more favourable forequities through the end of the calendar year (seasonal factors have, however, been a relatively weak influence on assets of late)."
"The “Santa Clause” rally might get going a little earlier this year. However, if “easier for longer” turns out to be the Fed mantra over the next few months, “steeper and quicker” might characterize tapering once it gets going next year."
Key Quotes
"Policymakers (even the hawks) have indicated that an October taper is unlikely due to the shutdown. We have penciled in January as the likely start to the Fed tapering but March is not out of the question. If the Fed is expected to keep policy stimulus in place for longer, risk assets are likely to outperform in the next few months."
"Seasonal factors turn more favourable forequities through the end of the calendar year (seasonal factors have, however, been a relatively weak influence on assets of late)."
"The “Santa Clause” rally might get going a little earlier this year. However, if “easier for longer” turns out to be the Fed mantra over the next few months, “steeper and quicker” might characterize tapering once it gets going next year."