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Fed Decision Crushes U.S. Dollar

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Sep 21, 2010.

  1. forextrends24

    forextrends24 New Member

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    Today’s sample of Forex Analysis from ForexHound.com

    The U.S. Dollar fell sharply lower versus the Euro and the Japanese Yen Tuesday afternoon after the Federal Open Market Committee hinted that it stood ready to provide stimuli for the U.S. economy. The suggestion of additional quantitative easing conjured up images of the Fed firing up the Treasury printing press, thereby weakening the Dollar.

    The FOMC statement suggested the Federal Reserve may be preparing to provide more stimuli, most likely at its next meeting in November. This news confirmed what investors were looking for prior to the decision. The Fed cited the main reasons for considering additional stimulus was rising unemployment and falling prices. Today’s Fed statement brought up concerns about deflation for the first time since its loose monetary policy began.

    In addition to the soft nature of the Fed’s monetary policy decision, favorable debt auctions in Spain and Ireland lit the initial fire this morning in the EUR USD.

    Read full article at ForexHound.com as well more Forex Trading articles including Forex Technical Analysis and Forex Education

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