Fed PolicyInvestments

Traders tangled in Fed uncertainty

Mixed signals keep traders guessing

According to Forbes magazine, mixed signals from the market and the threat of the Federal Reserve reducing its bond purchases is keeping traders guessing.

It seems that an assortment of concerns is making it difficult for forex traders to pull that capital market position trigger. The prospect of the U.S. Federal Reserve reducing its bond-buying program next month continues to play on their minds. With little in the way of fresh impetus, until most of the market’s pricing moves across the Atlantic to the U.S., investors have been weighing yesterday’s encouraging Eurozone growth figures against the Federal Reserve Bank of St. Louis President James Bullard’s comments that there could be risks of excessive future inflation

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