21 Nov 2013
Morning roundup: Risk off on yesterday's Fed minutes release
FXstreet.com (London) - The relatively hawkish minutes from the Federal Reserve’s October meeting released yesterday helped boost the dollar and weigh on risk overnight and into this morning's session on the prospect of some Fed support being removed through a tapering of its USD85bn-a-month asset purchase programme.
The minutes signalled that the Fed would be prepared to taper asset purchases “in coming months” if the economy improves as projected.
With the exception of the Nikkei, equity markets have been subdued throughout the end of the Asian and the morning session. The Japanese markets climbed 1.92 percent on the decision by the Bank of Japan to keep its policy unchanged and remains committed to ultra-loose monetary policy as it fights deflationary pressures.
The Ftse is flat on the day at 6,680.76 with the Dax down 0.39 percent to 9,165.97.
EUR/USD is up 0.19 percent to USD1.3463. The euro dropped on surprisingly weak French PMI data (48.8 versus consensus expectations of 51.0), however it was dragged back up by robust German PMI, rising from 51.7 to 52.5, beating the market consensus of 52.0.
USD/JPY has been one of the biggest movers on diverging monetary policy expectations. The dollar is up 0.75 percent to JPY100.7950.
The minutes signalled that the Fed would be prepared to taper asset purchases “in coming months” if the economy improves as projected.
With the exception of the Nikkei, equity markets have been subdued throughout the end of the Asian and the morning session. The Japanese markets climbed 1.92 percent on the decision by the Bank of Japan to keep its policy unchanged and remains committed to ultra-loose monetary policy as it fights deflationary pressures.
The Ftse is flat on the day at 6,680.76 with the Dax down 0.39 percent to 9,165.97.
EUR/USD is up 0.19 percent to USD1.3463. The euro dropped on surprisingly weak French PMI data (48.8 versus consensus expectations of 51.0), however it was dragged back up by robust German PMI, rising from 51.7 to 52.5, beating the market consensus of 52.0.
USD/JPY has been one of the biggest movers on diverging monetary policy expectations. The dollar is up 0.75 percent to JPY100.7950.