Week In FX Europe – Market Cannot Side-Step All Fed Rhetoric

Investors have had to side step month-end, quarter-end and mid-year portfolio adjustments. However, they could not escape some compelling Fed rhetoric on the final Friday of June. Since helicopter Ben's failed attempt at transparency at last weeks post-FOMC press conference there have been no fewer than five Fed speakers attempting to clarify his points.

The plethora of Fed speakers have gone out of their way to point out that the market has got it wrong with the rate outlook. Fed's Fischer, Dudley, Powell and Lockhart have used adjectives like "feral hog's" and "cold turkey" to describe some of the out-of-sync rate movements that investors have endured over the past nine-day's.

Have some members already decided on September? Fed governor and voting member Stein happened to reignite the QE tapering market anguish on Friday when he argued that the central bank should be "clear that in making a decision, in say September, it will give consideration" to the...