10:13 EDT - If the Fed announces only an extension of Operation Twist,
it would fail to give the market juice for a big rally, but it might
not result in a big selloff, either, says Andy Busch of BMO Capital
Markets. A continuation of the maturity-extension program is "what's
priced into the market," he says. While the euro could slide if
Bernanke doesn't announce a new round of QE, "I don't think its going
to go far." Reports from the G-20 this week that European leaders are
floating the idea of using rescue funds to buy government debt will
keep a floor of support under the common currency, Busch says. The
euro is holding steady near $1.2700, from $1.2684 late Tuesday,
according to EBS via CQG. (matt.walter@dowjones.com)
(END) Dow Jones Newswires
June 20, 2012 10:13 ET (14:13 GMT)
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