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18/10/2010 - The Current Market Sentiment

Discussion in 'Current Market Sentiments' started by fx-recommends, Oct 17, 2010.

  1. fx-recommends

    fx-recommends Content Contributor

    Aug 6, 2008
    Likes Received:
    The market has seen in Ben Bernanke's speech last Friday by the US session repeating of the same conclusion that the fed is to provide further liquidity in a second round of its quantitive easing plan to stimulate the economy after easing back in the second half of this year buying more Mortgage backed securities and rolling over it’s holdings of treasury securities as they mature before the deterioration can have further negative impacts on the consuming and capital spending and to inform the markets that the Fed will not stand seeing the economy falling back in a second dip recession with no action even with the interest rate near 0%.
    The greenback has got back some of its recent loses across the broad on this profit taken wave which pushed the single currency down to close below 1.4 versus the greenback after reaching 1.4158 and the British pound to finish the week below 1.6 psychological level after touching 1.61 containing most of its week gains versus the greenback while the Aussie could touch a parity with the US dollar for the first since 1983 when Bernenke was talking about the current economic conditions in US and the Fed's expected readiness to take the needed decision for helping the struggling economy. The US equities markets are still cheered by this awaited new stimulation package which is expected to be announced after the FOMAC meeting next month, by god's will. These new widely forecasted easing measures could actually weaken the greenback value across the broad after the Fed's reference to it in its recent meeting to fight the deflation emerging pressure in US helping the stocks prices which are waited to push forward the economic growth with no expected inflation pressure as the Fed's repeated recently and as we have seen U.S. consumer prices of September rising up by just 0.1 percent and its core unchanged for the second month monthly.
    God willing it is important today to wait for US total net TIC flows of September which were 63,7B$ in August, US industrial production of September to be up by .2% monthly as August and the capacity utilization to be 74.8 from 74.7 in August and also the National Home Association Builder figure to be 14 in September from 13 in August. .
    Best wishes

    FX Consultant
    Walid Salah El Din
    E-Mail: mail@fx-recommends.com
    #1 fx-recommends, Oct 17, 2010
    Last edited: Oct 17, 2010

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