Bell FX: The US Federal Reserve this morning has started to taper
Bell FX: The US Federal Reserve this morning has started to taper. The FOMC announced a reduction of Treasury and mortgage-backed securities by US$5bn each per month for a total taper of US$10bn a month. The taper begins in January and the Fed expects these continued purchases to still put downward pressure on longer-term interest rates.In FX markets, the USD was broadly stronger against the AUD and emerging markets ahead of the FOMC's announcement. GBP was buoyed by strong labour market data. The Fed's taper early this morning Asian time resulted in substantial currency movements, but with most currencies recording little net change. Ultimately as markets digest the Fed's announcement, the market expects the USD to continue its recent strengthening trend against emerging markets and commodity currencies. The Australian Dollar is trading below USD 0.8900. Today's Forecast Range USD: 0. 8835 - 0.8925
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