Wednesday, 12 Aug 2009

US Federal Funds Rate Just Ahead!

A nice and easy morning in the forex market today, despite the bumps felt by the Bank of England's (BOE) inflation report this morning. While inflation doesn't appear to be growing very rapidly in many of the countries who are creating multiple policies to combat the economic downturn of 2007-2008, the bottom has indeed been reached and the world is currently making the swing.

To justify this claim we can turn to the multiple reports showing positive growth in the manufacturing sector as well as the growing market optimism across Europe. We also look to the highly bullish employment report last Friday from the US which dropped into the forex market like a bomb-shell, shattering previous trends.

Looking ahead today, we still have the 2 most influential reports due to be released after the opening of the American markets. At 14:30 GMT we'll receive this week's Crude Oil Inventories data, which has the potential of driving oil prices even lower than their current mark if it shows a growth in inventories. At 18:15 GMT will mark the release of the Federal Open Market Committee's (FOMC) interest rate decision and statement regarding economic growth, inflation, and future monetary policy decisions. Around the time of this release, forex traders will no doubt feel a heavy twist of volatility as the USD prices in the impact of the statements and decisions.