One central bank ends QE, another increases it. This is not a trick, but a treat for the markets. The global equity markets found additional buoyancy on Friday after the Bank of Japan surprised the markets overnight by expanding its monetary easing program to about 80 trillion yen a year, up from Y60tn-Y70tn previously.
It was a busy week for central banks around the world, with monetary policy meetings in the United States, New Zealand and Japan. This made for a very interesting end to the week for the forex markets as investors digested the deluge of information coming from policymakers.
Overwhelming expectations expect the Fed to taper away the final $15 billion from their Quantitative Easing program, but maintain an air of caution by cementing the notion that they will remain as accommodative as possible for an extended period of time.