EURUSD - Trends, Forecasts and Implications (Part 3) - page 795

 

On Wednesday, 27 April, the Fed will hold its first ever press conference. The head of the US central bank, Ben Bernanke, will not only give his traditional address with comments on the Federal Open Market Committee (FOMC) decision, but will also answer questions from
journalists.

Among the main issues on investors' minds will be whether US monetary watchdogs think the recent price rise is just a temporary phenomenon, and whether the second round of quantitative easing by the Federal Reserve will be completed in June. If Bernanke hints that the central bank is concerned about current levels of inflation, it will be taken as a signal that interest rates in America will be raised earlier than previously anticipated.

Recall that the annual rate of inflation in the United States rose from 2.1% in February to 2.7% in March, while analysts had expected a rise to only 2.6%.

Analysts at Daiwa Capital Markets expect Bernanke to say that the US economy has not yet reached the Fed's target levels for both inflation and employment, so the monetary authority's approach will remain extremely soft. The Fed is likely to let the market know that the central bank is aware of the risks of such policies, is keeping a close eye on developments and will be ready to respond promptly if necessary.

Strategists at RBS Securities are going to watch out for changes in the prices of risky assets. From their viewpoint, stock and commodity indices will rise on the Fed's peaceful comments. At the same time, if the central bank hints at a shift away from its stimulus strategy, risky assets will lose value.

 
The Wall Street Journal
The dollar is falling faster and faster, posing a threat to the US
The weakening of the US dollar is accelerating: low interest rates, fears of inflation and huge federal deficits are undermining its status. China has allowed the yuan to strengthen steadily in recent weeks.

Financial Times
Dollar falls to lowest level in 2.5 years
The dollar fell to its lowest level since August 2008 on Thursday as risk appetite prompted investors to sell the currency in a carry trade. Against the euro, the dollar fell to its lowest level in 16 months.

BBC
US: BP may not be alone to blame for oil spill
The Coast Guard believes that safety concerns at Deepwater Horizon, owned by Swiss firm Transocean, may have contributed to the explosion and oil spill a year ago. BP itself is convinced of this.
 
 

Analysts polled by Bloomberg believe that the rate of recovery of the US economy slowed in the first quarter of this year due to an 18% hike in gasoline prices, which had a negative impact on consumer spending.

According to the experts' average estimation, the growth rate of the United States GDP slowed down from 3% in the last quarter of 2010 to 1.9% in the first three months of 2011. The data will be published on 28 April.

On 26 April the S&P/Case-Shiller index of real estate prices in the 20 largest US cities will be released. The index is forecast to fall by 3.3% in February. The Pending home sales index will be released on April 28 (forecast: a 1.7% increase in March after a 2.1% rise in February).

While the manufacturing sector is quite benign(durable goods orders are projected to rise by 2% in March after a 0.6% decline in February; data will be released on April 27), households are under pressure due to rising prices. The growth rate of household consumption (household purchases) is expected to fall from 4% in the fourth quarter to 2.1% in the first quarter.

The Conference Board's consumer confidence index (to be published on 26 April) may show an increase from 63.4 in March to 64.5 in April.

It should also be noted that investors' attention will be focused on the FOMC meeting to be held on 26-27 April as well as the follow-up press conference by Fed Chairman Ben Bernanke. According to market assumptions, comments from the US central bank governor will be in favour of maintaining a soft monetary policy.

 
I've thrown a bit on here (appreciate it)
 
 
strangerr:

Well, hello to you too)))


tebe toje privet

 
margaret:

Analysts polled by Bloomberg believe that the rate of recovery of the US economy slowed in the first quarter of this year due to an 18% hike in gasoline prices, which had a negative impact on consumer spending.

According to the experts' average estimation, the growth rate of the United States GDP slowed down from 3% in the last quarter of 2010 to 1.9% in the first three months of 2011. The data will be published on 28 April.

On 26 April the S&P/Case-Shiller index of real estate prices in the 20 largest US cities will be released. The index is forecast to fall by 3.3% in February. The Pending home sales index will be released on April 28 (forecast: a 1.7% increase in March after a 2.1% rise in February).

While the manufacturing sector is quite benign (durable goods orders are projected to rise by 2% in March after a 0.6% decline in February; data will be released on April 27), households are under pressure due to rising prices. The growth rate of household consumption (household purchases) is expected to fall from 4% in the fourth quarter to 2.1% in the first quarter.

The Conference Board Consumer Confidence Index (released on 26 April) may show an increase from 63.4 in March to 64.5 in April.

It should also be noted that investors' attention will be focused on the FOMC meeting to be held on 26-27 April as well as the follow-up press conference by Fed Chairman Ben Bernanke. According to market assumptions, comments from the US central bank governor will be in favour of maintaining a soft monetary policy.


Hi Margaret. If only some of these analysts knew where the price would go next)))
 
Dusha:
I've thrown in a bit here (check it out)

Very likely as well, entered the channel but lingered at the lower boundary - there is a good chance of a decline

The markings of the old wulffs, the figures themselves don't work anymore, but the lines do. Can't break through the blue line for a very long time, one of the signs of a possible decline. If it goes up, the targets are orange lines. If it starts to go down, the targets will be lower wolf lines.

 
strangerr:

Hi Margaret. If only some of these analysts knew where the price was going next))))
At this point in time - Flat...