The rumors from last night of Fed action came true as Fed just announced plan which has caused panic and reignited risk appetite for high yielders and carry trade. Momentum with the longs until the news fades. Just bad timing on taking trade that would normally work not knowing Fed joint action about to be announced, but that is part of the market and why you must manage risk more than anything. In at 7865-70 this spike hasnt caused much damage for the nzd so will let the market play the news out today and I will hold position. If you got out on breach of levels I will update on new sells when market settles. Here is some of plan. *FED CURRENCY SWAP LINES WITH ECB, SNB ARE FOR UP TO 6 MONTHS
*FED, ECB, BOE, BOC TO ADDRESS `ELEVATED PRESSURES’ IN FUNDING
*FED MAY MOUNT FURTHER AUCTIONS AFTER JANUARY
*FED CURRENCY SWAP LINES WITH SNB PROVIDE UP TO $4 BLN
*FED CURRENCY SWAP LINES WITH ECB PROVIDE UP TO $20 BLN
*FED TO AUCTION TERM FUNDS TO BANKS AGAINST `WIDE’ COLLATERAL
*FED PLANS FURTHER TERM AUCTION FACILITY OPERATIONS JAN. 14, 28
*FED PLANS UP T0 $40 BLN `TERM AUCTION FACILITY’ SALES IN DEC.
*FED SETS UP FOREIGN-EXCHANGE SWAP LINES WITH ECB, SNB
*FED TO AUCTION $20 BLN DEC. 17, UP TO $20 BLN DEC. 20
*FED, ECB, CENTRAL BANKS ANNOUNCE JOINT EFFORT TO ADD LIQUIDITY
