Forex Flash: Fed to slow asset purchases pending unemployment – Deutsche Bank

The Fed's Bullard reiterated that it made sense for the Fed to slow asset purchases as data improved, rather than to suddenly bring the purchases to a halt, and said this could even be done in a formulaic manner where for every one-tenth decrease in the unemployment rate, the pace of purchases could be brought down by $15B per month.

In a touch of irony, Moody's downgraded McGraw-Hill, parent of Standard & Poor's overnight from A3 to Baa2. According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “The outlook remains negative as Moody's cited the recent civil lawsuits filed against McGraw-Hill in relation to its ratings on mortgage securities as one of the reasons for the downgrade.”