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Forex Market Technical and Fundamental Recap

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Jun 25, 2009.

  1. forextrends24

    forextrends24 New Member

    Mar 27, 2009
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    Today's Forex Analysis summary.

    The Fed ended much of the uncertainty in the Forex markets today when it announced that its key lending rate would stay between 0 - .25%, and there would be no additional expansion of its balance sheet through the purchases of government assets and mortgages.

    Although it did not set a hard calendar date for a hike in interest rates, refraining from additional purchases of assets sent a signal to the markets that it would allow yields to rise. This scenario created the bullishness in the Dollar after the FOMC meeting.

    Traders were expressing their desire for an improvement in the interest rate differential which countered any buying from traders seeking more risky assets.

    The Fed also commented that the contraction in the economy was slowing. This provided additional support. Gains may have been limited as the Fed reported that inflation was expected to remain low.

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

    Disclaimer: Trading foreign exchange on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.

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