Forex Flash: Fed dreams, markets stir - Societe Generale

Kit Juckes of Societe Generale comments that when the Fed dreams about one day exiting QE, the rest of the market has to wake up and think about what it will mean.

He sees that the market reaction was to sell equities far more than to sell Treasuries and with yields still in a range, “it serves as a reminder that while we are supposed to contemplate the day the Fed changes tack, we aren't supposed to overreact.” He personally suspects that equities will settle into a range too, following a very strong start to the year.