POST FOMC

Top 10 Takeaways from January FOMC Statement  

  1. Fed Tapers by Another $10 billion, Starting February
  2. $5 Billion Reduction each in MBS and Treasuries
  3. Uber Dove Janet Yellen Supports Taper
  4. Decision was Unanimous
  5. Says Current Economic Activity "Picked Up" vs. "Expanding at Moderate Pace"
  6. Sees Future Activity "Expanding at Moderate Pace" vs. "Pick Up"
  7. Talks "Labor Market Indicators" vs. "Labor Market Conditions" - Further Improvement Seen
  8. Household Spending & Business Investment "Advanced More Quickly"
  9. Rollercoaster Ride in Emerging Markets Not a Big Problem for the US (lets see how long that lasts!)
  10. Fisher, Kocherlakota, Pianalto and Plosser votes replace Bullard, Evans, George and Rosengren

What you need to know is that the news by itself does not effect the mid or the long term movements already underway in the markets. If you pay too much attention to these "talking heads" you will find yourself very confused because you will be chasing price action all over the place. 
    What you need to do is see the bigger picture and forget about the rumors and the hype. 
Check the chart to see where the EUR/USD may be headed in the short-term. 


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