Forex online trading news move ahead through this agitated week with some new developments that will surely have their share of reactions in the currency markets.
Forex online trading news move ahead through this agitated week with some new developments that will surely have their share of reactions in the currency markets.As stated in an earlier post, important economic reports were released this week, their outcome promising to generate all kinds of measures to be taken and important decisions to be made in the next weeks.Regarding the much awaited Fed’s Wednesday meeting, U.S markets have not reacted very well to the gloomy picture about the economy painted by the Federal Reserve. In effect, according the released data, the U.S economy decelerated, growth in employment has been slow in recent months and the unemployment rate remains elevated. Also, housing indicators remain depressed and inflation has declined since earlier this year, reflecting lower prices of crude oil and gasoline. To make matters worse, forex online trading experts believe the Fed is not doing enough to overturn the economic climate, as the federal reserve announced that neither weak employment growth nor falling inflation will inspire it to loosen up monetary policy.“Markets will be disappointed, as they should be. The market had gotten ahead of itself a bit in terms of what the Fed would do, but it did seem it would at least manage expectations. It suggests there is a lot of internal debate going on in the Fed”, said a forex online trading insider. On the other side of the Atlantic, things are not going smoothly either. After last week’s announcement from the European Central Bank (ECB) President Mario Draghi, in which he clearly promised “to do whatever it takes to save the euro”, little has materialized so far, as the forex online trading market awaits for the highly anticipated ECB Frankfurt meeting`s press conference, hold at 08:30 EDT / 12:30 GMT today. Draghi’s pledge to save the common currency and the confidence he voiced that “it will be enough” triggered a euro rally over the past week and curbed bond market pressure on Spain and Italy. However, he limited moves such as buying debt bonds in the open markets to conditions and committees. “The market wanted action, not words, and didn’t buy this verbal intention”, said Patrick Mulholland, financial advisor at ING. Draghi also announced that the ECB would leave the main lending rate unchanged at 0,75% and a possible intervention in bond markets to fight the unacceptable high yields in some countries. The EUR/USD pair reacted positively to this announcement, rising from 1.2260 to 1.2294 before going back and erasing most of the gains. All forex online trading eyes are now set on today’s press conference, waiting for a delivery or disappointment from the ECB.