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Fed Minutes Push Dollar Lower into Close

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Jan 7, 2010.

  1. forextrends24

    forextrends24 New Member

    Mar 27, 2009
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    Today’s sample of Forex Analysis from ForexHound.com

    The Dollar finished the day near its low as a late session report from the Federal Reserve helped diminish expectations for an interest rate hike. Today’s Federal Reserve minutes showed that officials were unconvinced about the strength of the recovery and that inflation should remain under control for now.

    Although the Fed had forecast growth for 2010 and 2011, it stated that a faster paced recovery should not be strong enough to quickly turnaround the unemployment rate. In regards to last month’s positive change in the unemployment rate, the minutes said that Fed officials believe that “more than one good report would be needed to provide convincing evidence of recovery in the labor markets”.

    In summary, the current action in the Dollar seems to indicate that the recent signs of an improving economy will not sway Fed officials from their belief that the recovery would be gradual relative to past recoveries and that inflation would remain subdued. This leads me to conclude that the Fed will not be raising rates soon, and that it is not concerned about inflation.

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

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