Wednesday 1 August 2012

GFX Currency Alert

Good Afternoon,

As expected, the US Federal Reserve today announced that they are keeping their key interest rate at 0.25% and indicated that the rate will remain stable until at least the first quarter of 2014.

Additional points include

-will provide additional accommodation if economy warrants it
-significant downside risk to the economy
-housing markets remain depressed
-Economic activity decelerated during the first half of the year

Basically the Fed has done nothing more to add stimulus to the US economy but they reserve the right to act if needed. I think this report sets up for more action from the Fed in September.

After the announcement stocks were hit hard and USD.CAD jumped higher.

The ECB will be tomorrow morning at 08:30

Mike

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