- Fast approaching point to define limits of monetary policy
- Biggest problem in US is unemployment
- Inflation under control in the US
- Fed could sell securities when time is right
- Size of Fed asset purchases is “abnormal”
- The real question is how Fed gets out of corner it has got into regarding asset purchases
Fisher’s hawkish monetary comments have given the greenback a marginal lift.
EUR/USD has been down to test aforementioned buy orders at 1.2965/70 which have held on the first examination. From session low 1.2966 we’ve back up at 1.2975. Asian sovereign selling notable in this latest leg lower in EUR/USD.
Interestingly the US fixed income market hasn’t reacted to the Fisher comments. Indeed the benchmark 10 year treasury yield is at 1.6677%, LOWER than the 1.6745% which greeted me.
