The Fed will garner all of the attention today and may steal the thunder from the Energy Information Administration weekly report. With a neutral supply report perhaps on tap, the market will focus on how the Fed plans to get out of its QE mess.
Andrew Wilkinson is calling for a $5 billion reduction in the monthly bond purchases that are part of QE3 at today’s “penultimate FOMC meeting.” He does point out that a tapering is not the prevailing wisdom.
Ten days of pessimism flared into gold’s worst rout since 1980 this week, with selling so strong it knocked the world’s third-biggest exchange-traded fund further below its asset value than any time in a year.
The dollar traded at almost a five-year high versus the yen as the Federal Reserve begins a two-day meeting that may will result in a reduction of currency-debasing stimulus.