All Eyes On Fed Interest Rate Decision Today
Posted on 16. Mar, 2010 by Founder in Blog
Seems we are moving higher again today on the indexes. We are back near the breakout levels from the previous highs but need to get much higher for this to hold. Here’s the intra-day chart as of now.
Today, all eyes will be on the latest announcement on federal economic policy, scheduled to be reported by the Federal Open Market Committee (FOMC) at 2:15 pm EDT. While no change in the Fed Funds Rate is expected, we all will be paying close attention to whether or not the Fed drops the verbage of keeping interest rates low for an “extended period” of time. Volume recently has been low and I would expect traders are waiting to hear the news first.
Australia Keeps Interest Rate at 3.75%
Posted on 02. Feb, 2010 by Founder in Blog
Big news – Earlier this morning Australia’s central bank unexpectedly paused in raising interest rates - as sign that the central bank needed to support the economy’s acceleration and stem inflation later. Of course if you think about it, what we really see here is that things are not getting better “down-under” as fast as we all hope.
Per the chart above, you can see that right after the announcement the AUD took a huge hit on the intra-day. The bank of Australia kept the overnight cash rate target at 3.75% after three increases – a decision that blind-sided most economists and FOREX traders who were expecting a 74% chance of an increase based on futures trading.
Dollar And Yen Move Lower – Bernake 2nd Term
Posted on 25. Jan, 2010 by Founder in Blog
The USD Dollar and JPY Yen moved lower today as the situation for Fed chairman Bernanke to win the vote for second term became more optimistic over the weekend. Based on some political numbers we were able to gather up, there are 95% odds Bernanke would be confirmed, up from 88% on Jan. 23. A senate vote on Bernanke’s confirmation will be held this week and Bernanke will need to 60 votes to avoid procedural hurdle.
Of course a lot can happen in a matter of a week – but we still think he will be confirmed. This just means more printing of money and a much weaker dollar
Bank of England Leaves Rates At 0.5%
Posted on 07. Jan, 2010 by Founder in Blog
The Bank of England is leaving it’s key interest rates at an all time low of 0.5% today. The Monetary Policy Committee also announced no change to the central bank’s ongoing run of asset purchases, the money-creating measure that makes up its quantitative-easing program. In general, economists widley expected both decisions today as England still works on climbing out of the bottom. Either way we wanted to share the news as always. Watch the GBP/USD closely today – currently it’s falling on the news.
Fed Expected To Leave Interest Rates Unchanged
Posted on 15. Dec, 2009 by Founder in Blog
Federal Reserve meeting on interest rates starts today. They are expected to leave interest rates at a record low this week. The big question is whether Chairman Ben Bernanke and his colleagues will hint about when they will reverse course and start boosting rates – which they will have to do inevitably.
Plans for reeling in the unprecedented amount of money the Fed has plowed into the economy to bolster the recovery are likely to dominate its discussions Tuesday and Wednesday. The Fed is expected to announce its policy decisions on Wednesday afternoon.
Fed Interest Rate Meeting Forecast
Posted on 13. Dec, 2009 by Founder in Blog
The Fed Interest Rate meeting should forecast any future rate increases. As a tumultuous year nears an end, investors turn their attention to the Fed for an indication of when rates might go. The push and pull between the two ideas has left stocks churning so far this month, with the major gauges barely changed from three weeks ago and trading volume notably low for this time of year.
At the same time, the previously weak dollar has started to come back a little and the economic news has been more positive. A stronger dollar is good for the country and good for the stock market in the long-term, but in the short term the slight rebound in the greenback has put some pressure on the market. The weak dollar has played a role in the nine-month old stock market rally, by boosting dollar-traded commodities and the shares of companies that do a lot of business overseas.
AUD Interest Rates Raised Again
Posted on 01. Dec, 2009 by Founder in Blog
AUD Interest rates were raised again this morning by the central bank by a quarter percentage point for an unprecedented third straight month as evidence mounts that the nation’s economy is strengthening. On an intra-day chart you can see in green the reaction to the announcement.
Today’s increase is the first time the central bank has raised borrowing costs at three straight meetings, boosting the rate from a half-century low of 3%. Everyone else has pretty much keep their rates low for now. But this may be a sign of things to come around here…just take a look at the USD/CAD’s reaction.
Fed Interest Rate Decision Today
Posted on 04. Nov, 2009 by Founder in Blog
Another Fed day is upon us everyone and the interest rate decision today will be in the spotlight once again for traders. The overall prediction is that the Federal Reserve will leave key interest rates at a record low to entice Americans to spend more and help the economic turnaround.
At its last meeting in late September, the Fed opted to stretch out into early next year a key program aimed at forcing down mortgage rates and providing support to the housing market. The central bank isn’t expected to veer from that course today, but hey you never know what could happen on Fed day!
AUD Rallys After RBA Raises Interest Rates
Posted on 06. Oct, 2009 by Founder in Blog
The Australian Dollar surged after the central bank unexpectedly raised interest rates to 3.25% and promised further rate hikes going forward. The US Dollar fell against most major currencies on rumors that the Gulf States were leading talks about replacing the greenback as denomination for oil prices with a basket of top currencies.
Key Overnight Developments
• Aussie Dollar Soars as RBA Raises Interest Rates, Says More Hikes Ahead
• Australia’s Trade Deficit Narrows as Oil Imports Plunge, Outpacing Export Drop
• USD Drops on Rumors Gulf States Leading Plans to Change Oil Price Denomination
Critical Levels
The Euro pushed higher in overnight trading, retaking the 1.47 figure and adding as much as 0.5% against the US Dollar. The British Pound followed suit, adding as much as 0.4% against the greenback. We remain short GBPUSD at 1.6617 and EURUSD at 1.4710.
The Opportunity Of A Life, For Younger Gen.
Posted on 05. Oct, 2009 by Founder in Blog
The plight of baby boomers and retirees has been well-documented in the year after the financial meltdown. But for people in their 20s and 30s who have a good job and feel it’s secure, this is the best of times. Many were renters and had little or no money in the stock market. They didn’t take a six-figure hit to the value of a home or 401(k) account. Now they’re positioned to invest at prices no one would have believed during the boom years.
Home prices are down 30 percent, on average, and 50 percent or more in some markets. The Standard & Poor’s 500 stock index is 34 percent below its record high in October 2007. Young people are benefiting in other ways, too. The Cash for Clunkers program allowed them to trade in beaten-up used cars and buy new ones at a discount. “They’re never going to see that again,” says John Rogin, who owns a Buick dealership in Livonia, Mich.
The Consumer Price Index has recorded a rare drop over the past 12 months — 1.5 percent. And the decline for many goods and services has been much greater, allowing young people to put even more money into stocks and housing. Besides low prices, many have been spurred by low interest rates and a tax credit of up to $8,000 for first-time homebuyers.
First-timers, many between 25 and 34, accounted for about 45 percent of home sales at the end of July, a figure that has risen steadily over the past two years, says Walter Molony, a spokesman with the National Association of Realtors. Only 39 percent of adults under 35 are homeowners, compared with 80 percent of those over 55, according to the U.S. Census Bureau. So the opportunity for those in their 20s and 30s to take advantage of the real estate crash is greater than for any other age group.
Young people also got a break with the stock market. Even with the surge since it hit a 12-year low on March 9, the S&P 500 index is 30 percent lower than it was at the end of 1999. A recent study by T. Rowe Price, a money management company, highlights the benefits that young people can receive from investing in a down market.
The study compared how returns differ if someone starts investing during a weak decade for stocks that’s followed by a strong one — and vice versa. Somebody who invested $500 a month in a fund replicating the S&P 500 starting in 1970 and continuing through the bull market of the 1980s would have ended 1989 with $589,707 — for an annualized rate of return of 11.5 percent.
Live Interview With Our Founder
