Flash: Tapering remains on the cards – TD Securities

FXstreet.com (London) - Research teams at TD Securities noted that the US data reports suggesting that the US government shutdown has not had a significant impact on the economy ensure that the Fed tapering debate remains front and centre for markets.

Key Quotes:

“Tapering may not be a major event for the markets but persistently low volatility across assets suggests that investors may be somewhat complacent with regard to the potential impact of a taper decision—especially one that comes sooner rather than later. History shows we should be prepared for at least some volatility once the Fed reins back accommodation”.

"G-10 FX correlations suggest the JPY may outperform in the event of a vol spike, while the CAD may under-perform".