Further Quantitative Easing

Quantitative Easing is still the talk of the US market, with Dennis Lockhart (President of Atlanta Fed) saying that he would support further QE. The downside risks appear to be growing, with fears of deflation increasing the already high unemployment. As a result, the USD has lost its gains from yesterday’s Asian session.

The RBA Minutes for the October meeting are released today, and the market will be looking for guidance in the November decision. After the surprise of last month, the discussion of the labour market and the medium to long term inflation outlook will be interesting to see, as it was evidently absent following Octobers decision.