Some may argue the relative calmness in the markets was due to the Federal Reserve intervening in the markets with its quantitative easing program.
He said the U.S. should wind down its quantitative easing program.
However, the wording of the FOMC statement will be closely scrutinized for clues of upcoming Fed policy actions, including if and when to start to wind down its quantitative easing program.
Additionally, the disappointing jobs report will provide the Federal Reserve, which also overemphasizes the employment picture as an important indicator, with reason to continue with its quantitative easing program, additional fuel for the economy.
After all, it is hard to imagine the BOE could have been much more stimulatory it has already spent the equivalent of 25% of GDP buying gilts under its quantitative-easing program despite inflation remaining consistently above target.
The previous record was 6.45 billion shares, set on April 5, the day after the Bank of Japan announced its more aggressive quantitative easing program.
Through its program of quantitative easing, the Fed bought billions upon billions of Treasury paper to suppress American mortgage rates and ease the pain of the housing bust.
Further, some said if the Federal Reserve comes out with some sort of quantitative easing program at its meeting next week, then that will underpin prices.
FORBES: Survey Participants Split On Gold's Direction Next Week
In overnight news, Philadelphia Federal Reserve Bank President Charles Plosser said in a speech in Tokyo the Fed should start winding down its bond-buying program (quantitative easing) and be completely done with it by the end of the year.
FORBES: P.M. Kitco Metals Roundup: Gold Ends Firmer on Short Covering, Chart Consolidation
The next potential risk event for the exchange rate between the dollar and the yen could be the Group of 20 finance ministers meeting in Washington set to commence later, where it's possible that representatives of other countries could express their view on Japan's quantitative easing program and its potential impact on the global economy.
Those minutes said U.S. economic conditions are improving to the point that some FOMC members think its massive asset- purchasing program (quantitative easing) may have to be changed soon.
The Nikkei newspaper reported that the BOJ will consider adding to its asset-purchase program, known as quantitative easing.
FORBES: Comex Gold Rebounds On Easing Prospects, Indian Demand, Technical Factors
The expectation that the Fed will continue its quantitative easing measures could provide some short-term momentum but at some point the program will have to end, he said.
In the past month, as the European Central Bank (ECB) has been buying European government bonds in a belated quantitative easing program, Greece has received clear support as the two- year spread on its paper over Germany has widened by just 61 basis points or 0.61%.
应用推荐