For the fundamental analysts, here are some news about the US dollar's reaction to the release of a few economic indicators (such as the CPI and housing starts): The economic indicators seem to reinforce the FOREX traders' and investors' assumption that the Fed is taking a step back from their deliberation about any interest rate action at least until next year and are not going to cut the rates any time soon, in contrary to the rumors you probably have heard, which surfaced after the Fed vice president statement last week. This morning you can see the reports' (which was released over night) influence on the US dollar, which used to be slightly lower (around 13:00 Asia time the US dollar was on 118.85 to yen, and after the reports around 15:00 pm the Us dollar was 118.72 to yen).
Ashley Davies, a UBS strategist said this morning: "While the US dollar keeps its high-yielding status and the Fed seems unwilling to consider near-term rate cuts, we expect the US dollar to stay firm in the next few weeks before falling again over a three-month time horizon". In my opinion, this statement reflects most of us traders' opinions and predictions for the dollar and market movements for the long term. For the short-term, the FOREX market movements seems to be solid without any dramatic changes for the next few days, despite the fact that the Philadelphia Federal Reserves' survey for October will be released tonight. Movements will be noticeable only around next week when new and major US economic indicators (such as the Open Market Committee meeting) will be released on Oct. 25.
Mia Milis is an independent trader and provides financial advice regarding foreign exchange to several institutions as well as private individuals. Being an Internet enthusiast, she has taken up to provide advice through her brilliant articles, and in recent years has also founded theforexblogger.com in order to provide a platform online traders worldwide could share experiences through. Visit Mia at www.theforexblogger.com.
About the Author
Mia Milis is an independent trader and provides financial advice regarding foreign exchange to several institutions as well as private individuals. Being an Internet enthusiast, she has taken up to provide advice through her brilliant articles, and in recent years has also founded theforexblogger.com in order to provide a platform online traders worldwide could share experiences through.
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