Will Fed taper this week again?

[Rambo35]

Most expect another $10 billion taper this week and I think they will do so as well before they may decide to skip one meeting. So many expect a taper that I think it is already priced into the US Dollar and the reactions once taper is announced will be rather limited while I surprise stop of tapering is likely to result in a violent sell-off in the USD. I am setting up my trades in the next two day so that I may be prepared for either scenario with a bias towards taper.

Just my thoughts guys, feel free to share yours.

 

[Enivid]

Yeah, I also believe that they will cut QE3 by another $10 billion/month. If they don't, EUR/USD will likely soar.

 

[usman7290]

I think FOMC stance on Forward Guidance is more important that tapering. With jobless rate hitting 6.7% in December, the lowest level since 2009, if we dont see a precise explanation on farward guidance, it may result in leakage from stocks bubble. An explanation shall include how Fed would react if jobless rate falls below 6.5% threshold ?

 

[Fxpipper]

Yup, I expect it to happen and given what happened when the news was announced for the first time, don't expect much volatility since everyone's had the advance notice, months ahead of the actual taper..