Article Highlights

  • Fed tapers its asset purchases by $10 billion
  • Fed says unemployment needs to fall well below 6.5% before they hike rates
  • US housing starts rise to highest since Feb 2008
  • Canadian wholesale sales +1.4% vs +0.3% expected
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The U.S. session was peppered with good news as Uncle Sam as well as Canada gave investors early Christmas presents. For one thing, the Fed has finally started tapering its asset purchases. In its decision yesterday, the central bank decided to reduce its bond-buying program by $10 billion. Equities traders weren’t too disappointed about this though, since the Fed also assured that it won’t raise rates until unemployment falls well below 6.5%.

Not surprisingly, the Greenback dominated the trading session. Positive reports from Germany ain’t got nothing on the FOMC as EUR/USD fell below the 1.3700 mark. Yen crosses also saw rallies after USD/JPY shot up all the way to highs not seen since 2008. Even USD/CAD, which could should have been weighed down by Canada’s better-than-expected wholesale sales report, rocketed to the 1.0700 area.

We don’t have any major data to look forward to in today’s Asian session trading, so you might want to keep your eyes on Asian equities for continuation of yesterday’s price action. Good luck and good trading!

See also:

London Session Recap

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