Will markets call the Fed’s bluff? | Crypto Craft

  • Will markets call the Fed’s bluff?

    From blog.hycmlab.com

    It has been roughly two weeks since the Fed did its best to jawbone the market down by hinting at a rate hike on the horizon. It also mentioned that committee members were “talking about talking about tapering.” The market reacted by selling commodities and buying dollars. There was also what appeared to be a rotation back from value into growth, prompting some commentators to call an end to the reflation trade. Oil Oil was perhaps the biggest outlier, the content of the meeting barely able to budge it from its highs. It has since pushed even higher, rallying by around 4% in the following week to challenge its ... (full story)

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Bakker
Jun 30, 2021 9:45am — Edited
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USD/CHF isn't far from the end of its 5 waves up. When finished, there may be some pullback which could result in something more than just that if the Fed's bluff is found to be real.
I note on weekly chart it has touched 61.8 on downward pullback.
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Bakker
Jun 30, 2021 11:34am
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Quoting Vancarbon
The Fed are simply creating a bigger bubble to pop if the markets don't unwind and call the Fed's bluff . All the jaw boning from the Fed is simply reversed when they see how the market reacts and starts to retreat . The Fed should actively encourage this " over exuberance " as Greenspan once put it . 20 years of loose US fiscal and monetary policy as left the markets hooked on debt and false valuations
Very true.
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Bakker
Jun 30, 2021 1:07pm
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Quoting Bakker
USD/CHF isn't far from the end of its 5 waves up. When finished, there may be some pullback which could result in something more than just that if the Fed's bluff is found to be real. I note on weekly chart it has touched 61.8 on downward pullback.
Not there yet on second look.
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