ForexLive North American wrap: Another $85B/month onto the QE fire

  • Fed adds $45 billion per month in Treasury purchases, as expected
  • Fed adopts guidance related to economic data
  • Full FOMC statement
  • US Oct import prices -0.9% vs -0.5% exp
  • OPEC leaves production quotas unchanged
  • Spain trimming pension payouts: Reuters
  • Boehner to his caucus: Obama not being reasonable
  • Schaeuble: ECB needs at least a year to set up bank supervision
  • Business roundtable index falls to 65.6 in Q4 from 66.0 in Q3
  • S&P 500 flat at 1428
  • CHF leads, JPY lags

Great trading day, lots of volatility before and after the FOMC decision. The US dollar steadily sold off ahead of the decision and then fell further after the midday statement.

EUR/USD clawed its way to 1.3030 and then jumped to 1.3097, pressing against offers ahead of the big figure.

Other pairs, like the commodity currencies, continued to extend after the statement and into Bernanke’s press conference. AUD/USD rose as high as 1.0584.

The yen was the exception to broad USD weakness. It’s a troubling sign when the yen couldn’t make any headway even with QE4evr. USD/JPY busted through a barrier at 83.00 for a quick trip to 83.29 and remains near the high. Yen crosses soared with EUR/JPY up 150 pips since this time yesterday.

Risk assets pared gains as Bernanke’s press conference wound down, giving back about 30 pips.

Author: Adam Button

Adam Button is the managing editor of ForexLive™. He was previously the chief currency strategist at XForex and has also worked with Intermarket Strategy. Adam believes there's an edge in knowing every tidbit of news. He was formerly the head of the markets team at the Canadian Economic Press and is a graduate of Ryerson University. Adam lives in Montreal, follow him on Twitter: @FX_Button.

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