Focus On US Interest Rates
Pure Fx
26.04.2011
The Easter break meant the market was quiet over the weekend. Currencies remained statuesque as investors enjoyed a deserved rest. However anticipation is rising ahead of the US interest rate decision later this week. It could have a massive impact on the dollar depending on rhetoric.
For instance if the Fed signals that interest rates are to remain subdued it could send the US dollar tumbling. This is because lower interest rates mean smaller returns on US bonds – prompting investors to look elsewhere. However if Fed Chairman Ben Bernanke indicates that interest rates could rise in coming months the US dollar could rocket.
In US data meanwhile confidence is up following strong US home sales figures.
Pure Fx
26.04.2011
The Easter break meant the market was quiet over the weekend. Currencies remained statuesque as investors enjoyed a deserved rest. However anticipation is rising ahead of the US interest rate decision later this week. It could have a massive impact on the dollar depending on rhetoric.
For instance if the Fed signals that interest rates are to remain subdued it could send the US dollar tumbling. This is because lower interest rates mean smaller returns on US bonds – prompting investors to look elsewhere. However if Fed Chairman Ben Bernanke indicates that interest rates could rise in coming months the US dollar could rocket.
In US data meanwhile confidence is up following strong US home sales figures.
Last edited by a moderator:
