Helicopter Ben goes all out again!

<p>Risk is back on with Frank Sinatra booming from the squawk boxes this morning after the Fed unveiled outright QE3 last night. –    It will target […]</p>

Risk is back on with Frank Sinatra booming from the squawk boxes this morning after the Fed unveiled outright QE3 last night.

–    It will target USD 40bn in MBS purchases per month and if conditions do not improve, it will continue those MBS purchases, adding additional assets if necessary.

–    Operation Twist will continue into December 2012. When it ends, officials “will be looking at the whole set of asset purchases in order to make decisions.”

–    Growth forecasts for 2012-2013 were revised higher as shown here, while officials extended its “exceptionally low” rate guidance from late-2014 into mid-2015.

The trend seems to be set as the risk on feeling is reflected in FX with the single currency trading above 1.3000 and the lifestyle trading towards 1.0600 as the USD index looks likely to close below its 52 week average at 80.05 and signal more USD weakness. The next medium term target for the euro is the 2012 high of 1.3485 with near term resistance seen at 1.3050 and 1.3150.

Another embarrassing day for Gordon Brown as precious metals rally with a close in gold this week above 1803 targeting all time highs of 1921.

The S&P has taken out its 2008 highs and now target 1525 with the DOW approaching its 2007 high of 13800 with its all time highs of 14200 seen as the next resistance.

 


EUR/USD

Supports 1.2980-1.2930-1.2850 | Resistance 1.3057-1.3100-1.3150


USD/JPY

Supports 77.35-77.15-76.55 | Resistance 77.80-78.35-79.00


GBP/USD

Supports 1.6145-1.6100-1.6050 | Resistance 1.6220-1.6250-1.6305

 

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