2013 already began with a storm, but let’s see what did not happen in 2012, a year that saw big events, but also the lack of them – a lack of major disasters that resulted in a lack of volatility.
Will they happen in 2012? Or will growth replace crises and create volatility driven by positive things?
Read the rest of the article 3 things that did NOT happen in 2012
The FOMC announced new policy measures: monthly buys of $45 billion of treasuries, substituting Operation Twist that ends at the end of the month. This joins the $40 billion in MBS, making it a total of $85 billion. Unemployment limit 6.5%, as long as inflation expectations remain under 2.5% for the upcoming year or two.
The Federal Reserve left its policy unchanged in its October meeting.  Language on the economy has been slightly modified. Operation Twist will continue until the end of the year and the rate pledge remains unchanged – until mid 2015. QE3 continues at the pace of $40 billion per month – no change, as expected. The only
Dollar/yen moved lower but didn’t go very far. At these levels, Japanese officials are very nervous. Japan replaced its finance minister, and the new chief is intensifying the rhetoric heard from his predecessor. The prospect of elections might be behind the stronger tone that now includes also threats about the independence of the central bank.
Ben Bernanke finally announced QE3. Given the new style of the program, an open ended one, some call it QE-infinity. The Fed will create money to buy Mortgage Based Securities for as long as needed. While it is hard to make the connection between unemployment and dollar printing, the markets expected this move. The result
Despite the statements of a “manageable” Grexit, Europe is not really ready for such a move and this could be painful for the euro, before and after the move, says John Kicklighter of DailyFX. In the interview below, Kicklighter discusses the situation in Europe, the potential disappointment regarding more stimulus from the Fed, the relative
Dormant since the first half of 2011, euro bulls have taken the forex market by the horns over recent days. Aided by the Fed’s open-ended commitment to keep the printing press running until American employers show much more willing, both investors and traders have been scurrying to reduce what had become a huge structural short
It’s day one of the “new world” according to the FED and it seems that financial markets are responding positively to the announcements made yesterday by FED Chairman Ben Bernanke. The DOW rallied as did the S&P 500, gold moved higher, and the EUR is trading above 1.3000. Â GBP has seen the 1.6200 level and
EUR/USDÂ is on high ground above 1.30, but capped under the next resistance. The Federal Reserve announced QE3, in an open ended manner, while continuing the twist. The aggressive policy steps didn’t result in an immediate crash of the greenback, but rather a slow demise. European finance ministers meet in Cyprus. Will Spain make the move
The Federal Reserve announced QE3 in a form of open ended buys of Mortgage Based Securities of $40 billion per month. This comes on top of the existing Operation Twist and on top of an extension to the low rates pledge. Ben Bernanke wrapped up the press conference and released some interesting statements. The highlights