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Goldman Sachs sent the dollar down by assessing that the Federal Reserve will need a dollar printing scheme of another 1 trillion dollars. Yes, one trillion. Quick update on these news and on currency reactions. Quite a few breakouts were seen. Some enjoy this move more than others.

Given the state of the economy, Goldman Sachs sees another dollar printing scheme – one trillion:

“We don’t expect this at the Sept. 21 meeting, but in November or December there’s certainly a possibility that it will be announced,”  Jan Hatzius, chief economist at the bank, said Tuesday. He added the Fed is likely to buy U.S. Treasurys worth around $1.0 trillion to kick-start the economy.

This comes as the economy is weak and more stimulus is necessary.

Reactions:

  • EUR/USD broke above 1.2930 and bounced back at  the  barrier of 1.30.
  • GBP/USD broke above 1.5470 and bounced at 1.5520.
  • USD/JPY fell below 83 – another fresh 15 year low.
  • USD/CHF settled well below parity, currently at 0.9956.
  • USD/CAD settled under 1.280 and bounced at 1.02.
  • AUD/USD broke above 0.9366 and above the 2009 high of 0.9405. It now trades at 0.9420 – highest level in two years.
  • NZD/USD broke above 0.7350 and aims for the next resistance line at 0.7440.

The Aussie is definitely the big winner of this event. The Pound’s move is the most limited one.

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What do you think? Will these breakouts hold? Will the Federal Reserve indeed print one more trillion dollars? Or is this just a one-time event?

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