Will USD longs unwind post-FOMC this week?

by gracecheng | October 25, 2006 at 06:13 pm
354 views | 0 Recommendations | 0 comments

Photos

Will USD longs unwind post-FOMC this week?

Will USD longs unwind post-FOMC this week?

see larger image

uploaded by gracecheng

My guess that the Fed was not going to say anything spectacular was
correct, given that past statements also revealed little about their
decision. The US Fed has left rates on hold at 5.25% as expected, for the third month in a row, and its policy statement offered very little, if anything new,
for traders who were expecting something hawkish from the Fed. They
again offered a balanced forecast of moderate growth, with inflation
seen easing down the road although some inflation risk remains.
US bulls have been falsely over-optimistic and must surely be quite
disappointed now. We might see some big unwinding of USD longs this
week if durable goods come out weaker than expected later today. On the
FOMC announcement,..

Comments (0)

This story was created over 3 months ago, the comment thread is now closed.

closeSign in to NowPublic

is reporting from