Summary: U.S. stocks’ final reaction to FOMC press statement was a strong up day. Asian stocks followed, but with lot less enthusiasm. CHF continued huge strengthening, while JPY was muted, still scared of the “magic-76” intervention levels.
“The ECB will disclose its total purchases for the week on Monday, but some analysts estimate the ECB bought at least €3.5 billion ($5 billion) on Monday and billions more Tuesday—however, a small fraction relative to the size of Spain and Italy's debt markets.” Calculated Risk
Views: Keep the Brazil short. EURUSD is too happy testing resistance levels instead of support levels. While the range since the beginning of summer is still intact, the price action is warning something is not right in my long term view of eventual breakout to the downside. Keeping out.
EURO CRISIS
“…policy of the ECB has been extremely tight since 2008, measured by the concept of macroeconomic stability and is therefore an important cause of the current mess.”
The continued embarrassment that is European monetary policy … economists? – A Fistful of Euros
FOMC - AFTERMATH
Redacted Version of the August 2011 FOMC Statement – The Aleph Blog
FOMC statement – 9 August 2011 – alphaville FT
Goldman Sachs: "QE3 Is Now Our Base Case" – Zero Hedge
Goldman's Take: "Fed Returns To Monetary Easing" – Zero Hedge
FOMC gives a bit more – The Big Picture
FOMC Statement: A prudent no decision – Pragmatic Capitalism
The Fed Decision and the Market Reaction – A Dash of Insight
Stealth QE3 is upon us – Economic Musings
Operation Twist — and shout – alphaville FT
Permanent Zero at the Fed sparks huge relief rally – Credit Writedowns
Fed’s past policy to adjust the shape of the yield curve did not work, according to… Bernanke!
OTHER
Good list of things to watch out from Saxo Bank
St. Louis Fed has a new Excel add-on to directly download data.