Quotes from HSBC Global Research:
-It seems increasingly likely that the Fed will move to ease policy
again soon. The precise nature and timing of the easing remains
uncertain, but there are good reasons why the market is expecting a
move at the next FOMC meeting on September 13.
-In addition, we believe we are at a point of inflection right now.
The combination of looser US monetary policy and the fiscal cliff is
moving the crisis away from the eurozone and towards the US.
-The further loosening of monetary policy should induce a 'risk-on'
market environment - USD negative. Meanwhile, the fiscal cliff will
focus attention back on US structural problems. This is a world of
rotating sovereign risk and further QE, the election, and the
impending fiscal cliff is seeing the FX market shift its focus away
from the EUR towards the USD.
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