Shift in Fed language possible: Advisory firm
Traders also note, in addition to talk of a push for another discount rate hike, the fund advisory firm report making the rounds today also says the Fed may shift its language, dropping “extended period”.
Why that is a surprise is beyond me as it was hotly debated at the last FOMC meeting.
EUR/USD is consolidating at the bottom after the range after a mild range-extension to the topside earlier in the morning. Ready buyers in EUR/USD on seen on dips, should the opening gap from Monday morning close.

AUTOREFRESH 













Shift in Fed language possible: Advisory firm | ForexLive…
Traders also note, in addition to talk of a push for another discount rate hike, the fund advisory firm report making the rounds today also says the Fed may…
Hi Jamie,
Do you know when the advisory firm stated this? It seems that risk aversion had already swept throught the markets by the time the information was posted here.
How are the big traders beating us to the informational punch?
chris
I must be losing my fastball…
A cut in the discount rate would cut into bank earnings and would further jeopardise already very weak standing of commercial real estate loans. Bernanke will be very reluctant to raise rates – We have yet to see any signs that the Fed is going to drop ‘extended period’.
A hike in the discount rate would be immaterial to bank earnings. The rate is at 0.75% today. Why would a bank borrow at 0.75% when it can borrow in the market at 0.15%
A year ago, you had a point. Not today. Know how much was borrowed from the discount window last week? $7 bln…peanuts…
Cor I could murder a peanut.