Anyone scalping the FTSE Futures??

5840 comming up then I could do with a bit of a fall for a better price 5620 area would be fine
 
The Federal Reserve’s Minutes from the July 31 to August 1 meeting suggested that new QE was on the way, and that if the US’ economic recovery continued to move at stall speed, the Federal Reserve would pull the trigger on more accommodative measures. Chairman Ben Bernanke’s remarks at the Jackson Hole Economic Policy Symposium defended nontraditional policy measures (beyond setting rates), but there was a clear lack of conviction for more of the same: diminishing returns were noted. More recently, the discouraging August labor market reading likely pushed the Fed towards more action. But in what form?


In light of recent developments, we still don’t believe that the “New QE” referenced in the Fed Minutes necessarily means “QE3,” or a bond-buying program aimed at lower yields. Similarly, we don’t believe that the “New QE” necessarily means a large-scale asset purchase program (LSAP) aimed at asset-backed securities (ABS) or mortgage-backed securities (MBS), like QE1.


Instead, we think it is possible that the New QE means a program aimed to help consumers in a more tangible sense to help the recovery further; it is clear that despite all-time low mortgage rates, the housing market still can’t catch a break. Any form of housing assistance would make sense for a number of reasons. This would satisfy the innovative stimulus idea that many have searched for, and would restore credibility to the Federal Reserve, as it would show that there are a number of policies that could be deployed to help the US economy, not just LSAP or debt monetization.


The idea is simple: free up income for consumers to dispose of, and growth will strengthen (consumption represents nearly 75% of the headline growth figure in the US now). If the Federal Reserve doesn’t resort to QE3 a la QE1 or QE2, then it saves that bullet for a more crucial time, when yields start to spike, for example. This fits in very neatly with the approaching “fiscal cliff,” which could very-well push yields up. In that sense, then, if yields do climb in the beginning of the year, QE3 could be implemented to help cushion the economy.


If QE3 is announced, we should expect the US Dollar to take a severe beating, especially against the Euro and the Japanese Yen. However, if any form of New QE is announced which doesn’t suppress the yield curve, the US Dollar could actually gain. The key pairs to watch are EURUSD and USDJPY.
 
Morning All
BHP - Flat
RIO +0.69%
Asian markets slightly up.
Trade the ranges until the FED.
Then who knows, we smash higher, we crash lower or we go nowhere.
 
Keltner Channels on 1 hour AUSUSD look like they work good
 

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