Flash: consensus for March taper - BBH

FXstreet.com (Barcelona) - Strategists at BBH noted a source of inspiration yesterday from the ong>FOMC minutes.

Key Quotes:

“The market seemed to take to heart the notion that the Fed is still prepared to taper at one of the next few meetings. This is not news. The minutes did not break new ground”.

“Bernanke has said the same thing earlier this week. Surveys had shown the consensus is for tapering to be announced in March”.

“In addition, the minutes also confirmed what the market already suspected about the reliance on forward guidance instead of asset purchases”.

“The Fed want to anchor expectations that tapering is not tightening. And the tapering is likely to be accompanied by stronger forward guidance”.