Comments on: Market getting very nervous ahead of Wednesday’s FOMC https://fxww.com/market-getting-very-nervous-ahead-of-wednesdays-fomc/ The Professional Source Tue, 18 Jun 2013 01:14:44 +0000 hourly 1 By: Sean Lee https://fxww.com/market-getting-very-nervous-ahead-of-wednesdays-fomc/#comment-23294 Tue, 18 Jun 2013 01:14:44 +0000 http://381c099c8f.nxcli.net/?p=8641#comment-23294 I agree with that Gus, Asia will benefit I’d say, but timing is everything and as James mentions above, we might get the deleveraging first?

]]> By: James https://fxww.com/market-getting-very-nervous-ahead-of-wednesdays-fomc/#comment-23292 Mon, 17 Jun 2013 23:40:15 +0000 http://381c099c8f.nxcli.net/?p=8641#comment-23292 The way I see it is a sea change move – like commencing the QE wind back – will see a return to deleveraging. So those positions that are currently near record extremes (like a weaker JPY and AUD) get squared up initially.

But I must admit that without a return to significant private sector credit growth, there is not a high likelihood for an end to QE. Money is debt in our system and lower debt levels destroys money and forces distressed selling.

]]> By: gus https://fxww.com/market-getting-very-nervous-ahead-of-wednesdays-fomc/#comment-23291 Mon, 17 Jun 2013 23:31:34 +0000 http://381c099c8f.nxcli.net/?p=8641#comment-23291 Sean, if the US economy dives again like back in 2007, doesn’t it mean that AUD and other comdolls will rise again since investors will be forced to look into other non-Euro countries?

]]> By: Sean Lee https://fxww.com/market-getting-very-nervous-ahead-of-wednesdays-fomc/#comment-23289 Mon, 17 Jun 2013 21:53:56 +0000 http://381c099c8f.nxcli.net/?p=8641#comment-23289 It’s got more to do with risk pairs really Jasper, the USD might fall heavily against the Yen but make some gains against the AUD? But longer term I think the mkt is realising that only massive QE cud help the US economy and this is a false dawn, once it dries up then the US economy dives south again?

]]> By: JasperD https://fxww.com/market-getting-very-nervous-ahead-of-wednesdays-fomc/#comment-23288 Mon, 17 Jun 2013 21:46:07 +0000 http://381c099c8f.nxcli.net/?p=8641#comment-23288 Morning Sean! What I don’t get is: if the market thinks Fed is more likely to taper, shouldn’t USD strengthen? Why do we have the opposite?

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