Forex Investment and Currency Trading

Tue April 29 14:00 Consumer Confidence
Wed April 30 12:30 Employment Cost Index
12:30 GDP
GDP Price Index
14:00 PMAC Survey
Thu 1 12:30 Jobless Claims
12:30 Personal Income
Consumer Spending
Core PCE Deflator
14:00 Construction Spending
14:00 ISM Survey
Domestic Car Sales
Domestic Light Truck Sales
Fri 2 12:30 Payrolls
Hourly Earnings
Unemployment Rate
14:00 Factory Orders
Consumer [...]

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The Federal Reserve will ease a modest 25 basis points at this week’s 2-day meeting, following financial market cues indicating a need for monetary policy patience. Improved credit market conditions in recent weeks have reduced the urgency of further rate cuts. While economic releases remain weak, increasing concerns on the inflation front, along with worries that further steep dollar declines are not helpful to the U.S. or world economies, will induce the Fed to slow its easing pace. Market expects the FOMC to indicate that downside risks to growth remain, while also expressing concern over inflation developments. With housing still [...]

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Historically, the discount window has been the key facility available for banks to access overnight liquidity at the Fed, acting as the principal safety valve to the banking system by ensuring that there is sufficient liquidity in the financial sector. The design of the facility was akin to the Bagehot (1873) principle that at times of financial crisis the central bank should “lend quickly, freely and readily” against good collateral, but with a penalty so that the loans do not represent a subsidy to the borrower. As such, there were explicit deterrents in place to preclude depository institutions from using [...]

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 HIGHLIGHTS

Since the onset of the global credit crunch in August 2007, the U.S. Federal Reserve has resorted to a slew of innovative (and sometimes unconventional) approaches to dealing with the problems faced by distressed U.S. financial institutions.
The effort has been part of the Fed’s attempt to stave off a full-fledged financial sector meltdown, and to blunt the adverse impact of the ongoing disruptions on U.S. economic activity.
Despite the massive amounts of liquidity injected into the money market, market does not expect the measures introduced to pose any significant inflationary risks to the U.S. economy.
Moreover, market does not believe that the Fed’s [...]

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