AUTOREFRESH 
Fed leaves rates unchanged. Does QE lite
By Gerry Davies || August 10, 2010 at 18:15 GMT
|| 24 comments || Add comment
Fed says will keep holdings of securities at current level by reinvesting principal payments from agency debt, MBS in longer-term treasuries
- Will continue to roll over holdings of treasury securities as they mature
- To keep rates exceptionally low for an extended period of time, keeps fed funds rate at zero to 0.25% range
- Pace of recovery has slowed in recent months
- Pace of recovery is likely to be more modest in near term than had been anticipated
- Will provide technical guidance on operations later this afternoon
- Measures of inflation have trended lower in recent quarters
- Inflation likely to be subdued for some time
- Household spending increasing gradually but constrained by high unemployment, housing, tight credit
- Vote on policy was 9-1 with Hoenig dissenting
- Fed will monitor outlook and employ policy tools as necessary to promote recovery
playing a real tight short trade on e/j now, then buy the...
Dollar wins nothing…..
Gerry, QE lite, do you think it is going to push Japan to do something w/Yen..even though they didn’t do anything last night?
Hi TN, sorry what do you mean “do something w/yen” im being a bit thick here
Dont think Japan will do anything soon.
Well, for now, indifference rules my day… I only have my phone to trade on and I didn’t dare catch something like that without full controls… But we’ll see how it plays out over the rest of the day.
Morning/Evening all, Hi Gerry
Its 4.30 am here in Sydney. I woke up to trade FOMC and happy to see Fed did QE-2 (lite). I was long cable. just TPed it after a good 150 pop in less than 4 hours.
Happy days
Holy firecracker action!
Gerry, Possible intervention by japan?
Can someone please explain what this statement means from the Fed. announcement today?
■Will provide technical guidance on operations later this afternoon
Thanks much…
Hi Gerry! What do you think, could eruo gain more strength at the end of NA session?
Hey, it’s going to form a nice bull hammer in both Cable and Fiber dailies.
I’d be amazed to see the BOJ intervene. Obviously USD/JPY has fallen as US yields slide, but it looks pretty orderly to me. You’ve got to concentrate on speed of move I think rather than particular levels.
Based on QE-2 (lite) dollar should sell off aggressively going into asian and London session. I wouldn’t be surprised if 85 in UJ finally gives way!!!
Thank You Professor Gerry!
You’re welcome TN
just posted the technical guidance Cliff
Hi Tibor, it’s going to be slow going now China has turned up. Plus the Asian interest up around 1.3250.
Thank you Gerry. What does “profit taking” eaxactly mean? Yesterday and today I read traders were taking their profit, hence they sell euro and buy usd. But if it is true, they have a lot of usd now with a not so good US economy news.
[...] Federal Reserve leaves rates on hold. Announces QE lite [...]
Tibor, the last few weeks have shown speculative players increasing their short USD positions. As the USD appreciated since Sunday’s open it would indicate they were taking profits before the FOMC event. After the FOMC event however, the dollar has dipped again. My guess is they are reinstating some of those shorts due to the USD-negative news. Hope that helps!
Morning All, Hi Tibor,please check your skype message
G’morning David. It looks as though we may have a chance to average in after all
I think so Zeke; I am please I got almost the low on cable; a couple of folks asked me yesterday and I saw the 1.5712 as key ….bought some around 30 with a sl below the 1.5700 and looking for a move back up unless BOE really negative news
Ninja move! Nice one. Good luck today.