Summary: This week’s was split into 2 equal halves – pre FOMC and post FOMC. Prior to the Fed announcement currencies mainly consolidated, though we had a report from the IMF – their World Economic Outlook – which revised down the expected growth rate of the overall global, but also mainly the advanced industrial economies. In the second half of the week traders latched onto this report as we saw equities and commodities pricing in a weaker growth scenario. The FOMC unveiled Operation Twist – a $400 billion effort to bring down long-term yields by buying long-term bonds and selling short-term bonds in their existing portfolio.The gloomy assessment of the economy that accompanied that sent stocks falling. Traders believe that this latest policy will not be really enough to stem a move towards recession and we go over some of the key takeaways in this video. We also cover the European debt crisis, the latest developments there.
Chief Market Analyst