Idea of the Day Last night the FOMC gave with one hand and took away with the other. It gave by adjusting its pledge to keep rates low so long as unemployment remains below the 6.5% level. There had already been doubts as to whether this was the right level and by doing this, the Fed has further removed the fear of tightening that was present in the market in September. The Fed took away by reducing the amount of its monthly bond purchase by a modest USD 10 bln. This was not fully expected by any means, but was a significant risk, as we highlighted yesterday. The adjustment in the employment threshold and small tapering amount meant that the initial impact on the dollar was modest, with some reversal of dollar strength seen. The belief that tapering will be dollar positive has been dented. Data/Event Risks USD: Claims data today likely to be ignored by market again given the recent volatility, so dollar should not be impacted. Latest FX News Gold: As with the dollar, the reaction on the gold price has been modest to the Fed’s tapering. Spot gold has rested just above the $1,220 level in Asia trade. The fact that 10 year bond yields only increased 5bp in response to the news is also supportive. GBP: The surprise fall in the unemployment rate yesterday to 7.4% is something of a game changer for sterling. The Bank of England had stated it would not consider raising interest rates at least until the 7% threshold was reached. Sterling has been one of the currencies that held up well against the dollar, on the thinking that the UK is potentially that much closer to raining interest rates. Further reading: Analysis: Sweet Dectaper is still a taper – USD has the upper hand Bernanke’s presser: QE could end in late 2014, sees case for somewhat stronger inflation FxPro - Forex Broker FxPro - Forex Broker Forex Broker FxPro is an international Forex Broker. FxPro is an award-winning online broker, offering CFDs on forex, futures, indices, shares, spot metals and energies, serving clients in more than 150 countries worldwide. FxPro offers execution with no-dealing-desk intervention and maintains a client-centric business model that puts customer needs at the forefront of our operations. Our acquisition of leading spot FX aggregator, Quotix, enables us to offer access to a deep pool of liquidity, as well as top-class order-matching and some of the most competitive spreads in the market. FxPro is one of only few brokers offering Negative Balance Protection, ensuring that clients cannot lose more than their overall investment. FxPro UK Limited is authorised and regulated by the Financial Conduct Authority (registration number: 509956). FxPro Financial Services Limited is authorised and regulated by the Cyprus Securities and Exchange Commission (licence number: 078/07) and by the South Africa Financial Services Board (authorisation number 45052). Risk Warning: Trading CFDs involves significant risk of loss. View All Post By FxPro - Forex Broker Daily Look share Read Next EUR/USD Dec. 19 – Sharp Drop After Fed Taper Move Kenny Fisher 9 years Idea of the Day Last night the FOMC gave with one hand and took away with the other. It gave by adjusting its pledge to keep rates low so long as unemployment remains below the 6.5% level. There had already been doubts as to whether this was the right level and by doing this, the Fed has further removed the fear of tightening that was present in the market in September. The Fed took away by reducing the amount of its monthly bond purchase by a modest USD 10 bln. This was not fully expected by any means, but was… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.