Damned if I can figure it out…
Stocks are down about 1.5% since this time yesterday. That doesn’t signal to me a market that is betting the ranch on more Big Ben’s Bonus Bucks™.
Yields are down a bit more than 10 bp from 24 hours ago when risk was raging. Maybe Mr. Market expects more QE.
The dollar is fairly weak, consolidating just below the 1.2288 highs posted late in London yesterday and tested again late in London today.
Gold and oil are below recent highs, is I guess the market isn’t expecting QE…
In other words, it’s a decidedly mixed bag and the market will react to what the Fed says from a fairly neutral standpoint.
If the Fed issues a decidedly dovish message and EUR/USD cannot break 1.2500, we may may do for a pullback to the 1.2380 level.
