Markets are shedding risk into the NA open, with equities down, bond yields lower and the USD broadly stronger. Charles Plosser (non-voting hawk) suggested that employment is strong enough that the Fed should begin tapering at the June meeting and should end all QE purchases by year‐end. However, he is a well known hawk and does not hold a vote until 2014, accordingly markets were able to brush past his comments. A disappointing ZEW release, intensifying EU banking union negotiations and uncertainty over UK membership in the EU have been the market’s focus today. There is only second afer US data today (import prices) and no Fed speakers, leaving markets to trade off of broader themes.
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Scotiabank