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15 Aug 2013
Flash: USD holds firm bias as September Fed deadline counts down – BBH
FXstreet.com (New York) - The BBH Currency Strategy Team grapples the outlook and recent performance of the USD in relation to Fed tapering.
Key quotes
“Bolstered by recent US data and official comments, speculation that the Fed will begin tapering as early as a month from now has negated the impact of the positive surprises from Europe today, leaving the USD with a firmer bias.”
“The debate among is not so much whether the Fed tapers as is it already discounted. “Bullard previously dissented in June due to the under-appreciated risks posed by the low inflation. He was brought back to the majority last month by an FOMC statement that seemed to give the low inflation readings greater significance.”
Key quotes
“Bolstered by recent US data and official comments, speculation that the Fed will begin tapering as early as a month from now has negated the impact of the positive surprises from Europe today, leaving the USD with a firmer bias.”
“The debate among is not so much whether the Fed tapers as is it already discounted. “Bullard previously dissented in June due to the under-appreciated risks posed by the low inflation. He was brought back to the majority last month by an FOMC statement that seemed to give the low inflation readings greater significance.”