Post Tagged with: "Federal Reserve"
EUR/USD Jan. 26 – Extends Impressive Rally on PSI Deal Hope and Bernanke’s Boom
Euro dollar is rallying in an impressive manner, breaking another important resistance line. The rally that began with Bernanke’s extension of the zero-rate policy continues with new hope of getting a deal done around the Greek haircut. In addition, more signs of strength from Germany and a successful Italian bond auction also help the single currency. Another
QE or Not QE – Doves to Fly Low
Voices for a third round of Quantitative Easing have been heard since QE2 ended in June 2011. This process, in which the central banks prints money, had a critical impact on currencies: the dollar dropped during the QE2 period and rose after it expired. This was a choppy process but a very evident one. Buying
A weak commitment from the Fed
There was no great surprise last night with the Fed’s decision to start publishing forecasts for the policy rate. This will be included in the regular summary of economic projections from the board members, the next one due at the end of this month. The Fed has already made a commitment to keeping rates steady
A Soft Chinese Landing is Still a Landing
When the world’s second largest economy slows down, this has a significant impact on currencies, no matter how rapid this slowdown is. AUD and NZD are set for a landing as well. Ilya Spivak of DailyFX discusses China, the effectiveness or ineffective of the QE operations all over the world, the high dependency of the
Why the Swap Cut Rally Will Likely Be Short Lived
The Federal Reserve and the ECB, together with 4 other central banks, decided to lower rates on dollar swaps by 50 basis points. As mentioned in recent days, the euro/dollar swap has reached levels last seen in 2008. This coordinated action had a strong impact on currencies, and sent EUR/USD back to the range seen
Fed Makes No Policy Changes – Dollar Rises
The FOMC released its statement, and it contains no changes in policy: Operation Twist will continue as planned, and the conditional commitment to keep interest rates low up to mid 2013 remained in place. EUR/USD dropped before the release to 1.3775, within levels seen during the day. Earlier in the day it climbed and challenged
Will Bernanke Raise Forecasts? FOMC Preview
The Federal Reserve took action in the past two meetings, pledging low rates and announcing “Operation Twist. It is likely to take a break now, as conditions improve. For the first time since June, the statement will be followed by a press conference by Ben Bernanke. A lack of big announcements in the statement can
Fed move meets with disappointment
Last night, the US Fed decided to launch the much talked about ‘operation twist’, designed to push down longer-term interest rates by selling their short-dated holdings (less than 3 years) and investing in longer-dates bonds (6 to 30 years). Compared to what was expected, the market moved on from this around three weeks ago as
7 Scenarios for FOMC: Many Measures are Needed for the Dollar to Fall
Ben Bernanke and his colleagues will be discussing a wide range of monetary stimulus options. Quite a few options are on the agenda, as the Federal Reserve is urged to do something to kick start the economy. QE3 is low on the list. The statement published on Wednesday, 18:15 GMT will be closely watched and will likely
Fed must re-evaluate their policy options
The continuing malaise in the US jobs market lifted hopes that the Fed may need to re-consult their policy tool-kit, with renewed speculation that QE3 would be back on the table. The difficulty for the Fed Chairman in terms of implementing further QE is numerous. The success of previous rounds of QE has been mixed