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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