Markets Get Whipsawed as Bernanke Speaks
Tweet Send to a Friend
Equities, commodities, currencies, and bonds – assets classes across the board were whipsawed today following the release of the FOMC statement and comments by Fed Chairman Ben Bernanke. Spot gold saw one of the most violent moves, dropping $20 per once, rebounding $40, and dropping again.
Currencies also experienced a violent reaction to the Fed comments, as the price action in EUR/USD blow the doors off the average hourly range. The currency saw 100 pip moves up and back down within hours.
Equity markets had a similar reaction, with SPDR S&P 500 ETF (NYSE: SPY) losing ground, then turning positive, and then falling again.
The violent moves illustrate how focused investors are on Fed policy moves. It also shows how thin the Fed's needle is and the difficulty it is having threading it. On the one hand, too much stimulus raises the prospect of inflation, and too little and they risk allowing growth to slip. The Fed is also very keen to keep its gun powder dry in the event of further deterioration in the economy.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Currencies also experienced a violent reaction to the Fed comments, as the price action in EUR/USD blow the doors off the average hourly range. The currency saw 100 pip moves up and back down within hours.
Equity markets had a similar reaction, with SPDR S&P 500 ETF (NYSE: SPY) losing ground, then turning positive, and then falling again.
The violent moves illustrate how focused investors are on Fed policy moves. It also shows how thin the Fed's needle is and the difficulty it is having threading it. On the one hand, too much stimulus raises the prospect of inflation, and too little and they risk allowing growth to slip. The Fed is also very keen to keep its gun powder dry in the event of further deterioration in the economy.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Markets Fluctuate on Chatter of Early QE Exit by Fed
- Soros, Others Dump Gold as Metal No Longer 'Safe Haven'
- Tepper's Appaloosa Enters Check Point Software (CHKP), Cuts Apple (AAPL) and JPMorgan (JPM)
Create E-mail Alert Related Categories
Commodities, ETFs, Market CheckRelated Entities
Ben S. Bernanke, Federal Open Market Committee, Standard & Poor's
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
