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Forex Market Technical and Fundamental Recap

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Jun 17, 2009.

  1. forextrends24

    forextrends24 New Member

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    Today's Forex Analysis summary

    This morning’s CPI Report indicated a lower than expected rise in the inflation rate. This sent a signal to traders that the Fed will probably announce that they will not raise interest rates in September as some have speculated. This announcement is likely to be contained in next week’s FOMC statement.

    Traders originally were buying Dollars around midnight (CDT) when the stock market started to break. Traders were shying away from risky assets in anticipation of a sharp break in the equity markets. Shortly before the CPI report was released, the Dollar topped almost as if the number had been leaked. By the time the government reported that U.S. consumer prices edged up to 0.1% in May, the break in the Dollar had started.

    The CPI report indicates that inflation is not yet the issue that traders speculated it would be following months of Treasury debt auctions. Based on the results of this report, it looks as if the debate will rage on as to when high inflation will return.

    This report also confirms what the Fed has been saying and that is, inflation will not be an issue this year.

    By ForexHound.com the portal for Analysis, Education and exclusive timely market Gann Analysis

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