Fed Tapering

Hi All,

The market seems spooked about the fed tapering early in September. What are your thoughts on the fundamentals of the USD? No tightening mentioned, just a slowing of easing. My thoughts - a slowing of bond purchases leading to rate hikes which have a positive impact on USD (especially as inflation is low at the moment), but turmoil for global equities and risky EM assets. Flipside - other ‘havens’ benefit (CHF, DKK, JPY?! - despite easing) as the world gets to grip in post QE world.

Thanks for reading.