Forex Investment and Currency Trading

FOMC Meeting (August 5th): Market expects the FOMC to maintain its 2% Federal funds rate target this week for a second consecutive meeting. The economy continues its below-trend line expansion, hampered by the housing contraction, financial market strains and tight credit conditions, weak labor markets and high input costs. In describing the downside risks to [...]

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The FOMC left the Fed Funds rate at 2.00%. The statement largely reflects the flurry of inflation
concerns raised by Fed officials following Chairman Bernanke’s comment that the Fed will “strong resists” the erosion of price expectations (June 9). BUT, although the statement reflects a hawkish undertone, it lacks an outright hawkish bias and seems to [...]

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The tension between still strong growth and higher inflation, and the consequence of higher rates will continue to define how risky assets perform going forward, in particular the relative performance of bonds versus equities. As long as the markets believe that rising bond yields are largely a by-product of good growth, not rising inflation, then [...]

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