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Video: Forex Focus - FOMC statement post-mortem
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John Hardy, cónsulting FX strategist from Saxo Bank reviews this week's FOMC statement.
The immediate reaction was for investors to sell the dollar, and currencies such as the Euro and Aussie rallying. The analogy for the FOMCs indicated policy of QE2 'if required' is like trying to cure a hangover with the hair of the dog, says Hardy. The fundamental issues of why QE might be necessary are not being addressed, but the cracks are being papered over.
The immediate reaction was for investors to sell the dollar, and currencies such as the Euro and Aussie rallying. The analogy for the FOMCs indicated policy of QE2 'if required' is like trying to cure a hangover with the hair of the dog, says Hardy. The fundamental issues of why QE might be necessary are not being addressed, but the cracks are being papered over.