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Fed’s Exit Plan Fails to Excite Dollar Bulls

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Dec 16, 2009.

  1. forextrends24

    forextrends24 New Member

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

    The U.S. Dollar erased earlier losses after the Federal Reserve released its monetary policy statement. The Dollar turned higher after trading most of the day lower after the Federal Open Market Committee offered more detailed plans to remove excess liquidity from the financial system.

    The Fed also offered commentary on the economy, saying that deterioration in the labor market is “abating”. This statement is a reaction to the decline in the unemployment rate earlier in the month from 10.2% to 10.0%. The Fed did reiterate, however, that it will keep its benchmark interest rate at a historically low level for “an extended period”.

    Bernanke and his friends also said “Household spending appears to be expanding at a moderate rate, though it remains constrained by a weak labor market, modest income growth, lower housing wealth and tight credit.” This statement can be interpreted to mean the Fed still wants to see people getting jobs, consumers spending and banks lending money.

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

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