The clue to the move came around this time 24 hours ago with the unexpected news out of the Federal Reserve, the heads up was posted on ForexLive:
- Federal Reserve says it plans to wind down its coronavirus pandemic Corporate Credit Facility
- More on the Fed winding down its corp. bonds, ETF program ... a tip-toe towards taper
And Justin sounded the klaxon again during his shift:
As I posted in that second link above, the cessation of this program is small, but I doubted I would be the only one reading it as a move towards taper. And here we are.
AUD, NZD, GBP, EUR all lower during the Europe and US time zones as the US yields rose and the USD flexed ... & US equity indexes fell:
Add in some strong job numbers (ADP) ... awaiitng now the NFP Friday:
- Goldman Sachs US nonfarm payroll preview for May
- May non-farm payrolls preview: By the numbers -- big gap edition
During US time Fed officials were out with fire hoses trying to water down the impact. The big guy from the NY Fed was on the wires:
AUD dropped sharply:
