Also negative datas from US makes the chart running long,..... Ben said "the money demand on US$ raised, so give them as much as possible, why not?" LOL
- #588,242
- Jan 25, 2012 3:13pm Jan 25, 2012 3:13pm
- Joined Jan 2011 | Status: Ordinary Members | 10,684 Posts
Mohan
- #588,247
- Jan 25, 2012 3:35pm Jan 25, 2012 3:35pm
- Joined Jun 2009 | Status: Carry Trader that not want interest | 2,016 Posts
good morning,
who did the magic last night Ben or Europeans ?
fed+bernanke is enough to change the trend of euro to the bull!!
Bismillah
- #588,248
- Jan 25, 2012 3:40pm Jan 25, 2012 3:40pm
of course mr ben bernanke....hehee...
fed+bernanke is enough to change the trend of euro to the bull!!
- #588,250
- Jan 25, 2012 3:42pm Jan 25, 2012 3:42pm
- Joined Jul 2011 | Status: Gold Again | 10,588 Posts
of course mr ben bernanke....hehee...
fed+bernanke is enough to change the trend of euro to the bull!!
Bernanke’s Openness To QE3 And Fed’s 2014 Low Rate Pledge Kills The Dollar
By Kathy Lien, Director of Currency Research at GFT
The Federal Reserve’s decision to extend their low rates pledge to 2014 drove the dollar sharply lower against the euro, British pound, Japanese Yen and other currencies. The greenback’s earlier gains were completely erased with the EUR/USD rising to its highest level year to date. Everyone expected the Fed to be dovish but few anticipated enough consensus within the central bank for them to push out their extended rates pledge by one year. According to the FOMC statement, the central bank is effectively saying no to any rate hikes for the next 2 to 3 years and more importantly, is leaving the door wide open for QE3. Unfortunately the individual projections for the first rate hike created more confusion than clarity, causing choppy trading in the U.S. dollar. While the statement exuded a sense of solidarity, the individual projections show significant division in the central bank. Of the 17 participants in the FOMC, 3 expect the Fed to raise rates in 2012, 3 in 2013, 5 in 2014, 4 in 2015 and 2 in 2016. In other words, as shown in the following graph from the Fed, 6 FOMC participants see interest rates increased before 2014 and 6 see rates increased in 2014 or later. As confusing as this may be, interest rate hikes are not on anyone’s radar. Instead the key question was whether the Fed would fire up the printing presses this year and according to Bernanke additional bond purchases remains an option. In fact, he spoke about the central bank’s readiness to expand their balance sheet so many times during his press conference that he could be hinting of plans to pull the trigger on QE3 in March.
Although the FOMC statement shows the influence of the new voters, the committee as a whole (voters and non-voters) shares vastly differing views on the outlook for the economy and monetary policy. What the Fed should have done was simply release the projections of this year’s FOMC voters and adjust as necessary every year. Nonetheless with 3 hawks and 1 dove replaced by 3 doves and 1 hawk, the U.S. is clearly left with a central bank that is more willing to consider the idea of increasing asset purchases. In addition to releasing their projections for interest rates, the Fed also has a quasi-inflation target of 2 percent.
It takes a lot for me to IGNORE you, but you can try.
- #588,251
- Jan 25, 2012 3:43pm Jan 25, 2012 3:43pm
- Joined Jun 2009 | Status: Carry Trader that not want interest | 2,016 Posts
Lol...the last time I margin call my account because of the speech of Mr. Bernanke....I will never forget it. Good thing I sleep last night...soundly and peacefully...or else I have no account to trade today...lol
hahah...but the fed rate on septermber is very interesting when i play euro swiss.....i buy at 1.0100....hahaha....at that time....very very interesting...
Bismillah
- #588,254
- Jan 25, 2012 3:56pm Jan 25, 2012 3:56pm
- Joined Jan 2011 | Status: Ordinary Members | 10,684 Posts
Mohan
- #588,255
- Jan 25, 2012 3:58pm Jan 25, 2012 3:58pm
- Joined Jun 2009 | Status: Carry Trader that not want interest | 2,016 Posts
I understand why the euro is gaining over the dollar ... but why is EUR/JPY rising??
and.....usually US event weight euro more than other pair..
Bismillah
- #588,257
- Jan 25, 2012 4:02pm Jan 25, 2012 4:02pm
- Joined Mar 2006 | Status: Chase that Dollar .. | 1,416 Posts
- #588,259
- Jan 25, 2012 4:09pm Jan 25, 2012 4:09pm
- Joined Oct 2007 | Status: Sniper | 14,770 Posts
I gotta said i'm lucky as hell !!!!!
I was at negative -100 PIPS on AUD/USD and EUR/USD combine...
It just drop couple of minutes, I got out of everything + 10 PIPS