Forex News Evening Preview: Economic Events for the April 30th 2008
Find attached a PDF review of the economic events for the night session for April 30th.
Good luck with your trading.
Forex News FOMC Statement from the Fed
Official Statement from the FOMC:
The Federal Open Market Committee decided today to lower its target for the federal funds rate 25 basis points to 2 percent.
Recent information indicates that economic activity remains weak. Household and business spending has been subdued and labor markets have softened further. Financial markets remain under considerable stress, and tight credit conditions and the deepening housing contraction are likely to weigh on economic growth over the next few quarters.
Although readings on core inflation have improved somewhat, energy and other commodity prices have increased, and some indicators of inflation expectations have risen in recent months. The Committee expects inflation to moderate in coming quarters, reflecting a projected leveling-out of energy and other commodity prices and an easing of pressures on resource utilization. Still, uncertainty about the inflation outlook remains high. It will be necessary to continue to monitor inflation developments carefully.
The substantial easing of monetary policy to date, combined with ongoing measures to foster market liquidity, should help to promote moderate growth over time and to mitigate risks to economic activity. The Committee will continue to monitor economic and financial developments and will act as needed to promote sustainable economic growth and price stability.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; Sandra Pianalto; Gary H. Stern; and Kevin M. Warsh. Voting against were Richard W. Fisher and Charles I. Plosser, who preferred no change in the target for the federal funds rate at this meeting.
In a related action, the Board of Governors unanimously approved a 25-basis-point decrease in the discount rate to 2-1/4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of New York, Cleveland, Atlanta, and San Francisco.
Forex Trading USDJPY continues its rollercoaster ride
The USDJPY is tested the 200 hour moving average after flying through the 100 hour moving average. So far it has bounced. Over the last 24 hours the pair has extended below the key intermediate term moving averages (yesterday), then back above it today. Now it is has tested the downside again.
Forex Trade: EURUSD testing 100 hour moving average at 1.5620
Should slow the mkt down.
Bobby’s Lunchbox 4.30.2008
As expected, the FOMC cut interest rates by 25 bps to 2%
We will await the FOMC’s policy statement to get a clue as to their future plans regarding interest rates.
Forex News FOMC cuts rate by 25 basis points to 2.0%
Signals a pause in rate cuts. 2 dissenters for no change.
- Federal Reserve: FED Fund rate 2,00 %
- EASING TO DATE SHOULD PROMOTE GROWTH
- ECONOMIC ACTIVITY REMAINS WEAK
- EXPECTATION FOR INFLATION TO MODERATE
- DROPS REFERENCE TO DOWNSIDE RISKS TO GROWTH
- UNCERTAINTY ABOUT INFLATION OUTLOOK REMAINS HIGH
- FINANCIAL MARKETS REMAIN UNDER CONSIDERABLE STRESS
- CREDIT, HOUSING TO WEIGH ON GROWTH FOR A FEW QUARTERS
Forex News FOMC Decision is imminent. A cut of 25 basis points is expected
The market is also expecting a change to a neutral policy. How they will say that will be interesting given the state of the US economy. However, the inflation is hard to explain away. Plus the dollar weakness is an issue which will be interesting to see if they address.
I would expect the stocks to initially do well. However, the gains should be contained. Expect extreme volatility.
Forex Trading – NZD/USD bounce being contained by avg on 4 hour chart
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