Expectationsrelated to the fact that in December the Fed will not start stimulus reduction slightly declined. In our opinion, the assurances of some experts that the statistics from the United States, which came out last week are insufficient for the decision on reduction of government bond purchases program. They are unfounded and serve just an excuse to justify the desire of many big players to push the market up to sell previously purchased assets with more profit.
All dynamics for the last three monthsof economic statistics indicates a clear improvement in the U.S. economy and therefore, despite statements by Bernanke that it is too early to begin to reduce the stimulus, the Fed might announce the desire to start reducing QE 3 program and even determine the timing of the event.atthenextmeeting that istobeheldon17-18 of December.
Despite the factthat the Fed did not explicitly seek to scare the markets and get out the same way to maintain the attractiveness of equity assets of U.S. companies, while not allowing government bond yield to grow, there will be a lossanyway. Another question is what they will be.
At this wave the dollarshould be supported as well as agreements on the U.S. budget, which were reached recently. In the current situation it should also be considered that the United States will be the first who come out of the soft monetary policy, and therefore the era of the weak dollar that lasted for 13 years is coming to an end.
