More is coming in from William’s speech:

  • Not much monetary policy can do if U.S. goes off fiscal cliff
  • World economy can slow a lot if it goes off fiscal cliff
  • Doesn’t see signs of diminishing returns from QE,
  • Fed is pushing on moving car, not on a string,
  • Housing market is improving due to QE.

Currency recap, in short ‘risk’ is bouncing:

EUR 1.2741

GBP 1.5854

USD/JPY 80.23

AUD 1.0381

NZD 0.8118

USD/CAD 1.0022