Maximum pain is on the way. What is about to hit could have been avoided, but knowing the pragmatic nature of central bankers they will simply state what they think the markets and world wants to hear. This time it is different. The stock markets all rallied figuring that we were talking “one and done” as we approached the days highs with the USD falling, Gold traded $15 higher and Asian futures followed in sympathy. Then, Vice Chairman Stanley Fischer spoke in an interview and claimed lets see how next weeks numbers go (first Friday in the month so we have Non Farm Payrolls). This was interpreted by the market to assume this could be the start of a series of rate rises. Immediately, stocks turned down, the USD strengthened, Gold dropped $25. At last the FED decided the end is near.
