Flash: Markets getting bad taste on tapering prospects - DB

FXstreet.com (Barcelona) - Jim Reid, Strategist at Deutsche Bank comments that he has been getting a very small taste of this over the last few days as markets are adjusting to the possibility that the Fed might start to withdraw liquidity as soon as next week.

Key Quotes

“After a week of losses Asian markets were mixed overnight with the Nikkei outperforming on the back of USD/JPY weakness, up +1%, whilst the Hang Sang is up +0.1%, however the Shanghai composite is down around 0.28% as we type.”

“This action comes as the US House passed its first bipartisan budget deal in four years yesterday, with the vote being won 332-94 today as 169 Republicans and 163 Democrats voting for the voting for the deal.”

“Also overnight AUD/USD hit a three and a half month low after RBA governor Stevens said that fair value for the currency is 0.85 to the dollar.”