FXstreet.com (Barcelona) - Tuesday’s testimony to the Senate saw Fed’s Bernanke repeating the latest FOMC statement of 20 June, “prepared to act when needed”, but no real hint of QE3 despite markets’ expectations as the US data had been relatively weak since. Disappointment triggered a risk-off move, with stocks down and the Dollar Index up.
However, Commerzbank analysts say the statement is now being interpreted differently, causing a corrective movement: “Observers argue that the reasons were largely tactical: the venue was wrong, it would have been inappropriate to anticipate the FOMC decision and so on”, wrote analyst Ulrich Leuchtmann.
However, Commerzbank analysts say the statement is now being interpreted differently, causing a corrective movement: “Observers argue that the reasons were largely tactical: the venue was wrong, it would have been inappropriate to anticipate the FOMC decision and so on”, wrote analyst Ulrich Leuchtmann.
