QuoteDislikedIndeed, with other data this week including existing and new home sales, which should continue to reflect the slowing of the US housing market, the dollar may well take a hawkish Fed more negatively.
"Always bet on black"
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QuoteDislikedIndeed, with other data this week including existing and new home sales, which should continue to reflect the slowing of the US housing market, the dollar may well take a hawkish Fed more negatively.
Quoting BurgerKingDislikedCan anyone explain why the USD strengthen today?Ignored
Quoting merlinDislikedim not exactly sure, but i was sure happy when i woke up this morning![]()
the USD is just plain ole' strong right now. today's price action confirms this. im long for the simple fact that the dollar is strong for no apparent reason. when you see strength (or weakness) and noone seems to understand why, this is a good time to jump on board. this sounds reckless i know, but its really a solid strategy. to me, everything points to a weak dollar right now (fed is holding, inflation is coming down, housing is in the shitter), yet the dollar is strong. this screams BUY DOLLARS! its only after a few months that we will look back and say "ah, now i see why the dollar was strong". but unfortunately, in a few months it will be too late to make money from this move.Ignored
Quoting NewstraderFXDislikedLike I've posted, I really think it has to do with traders buyin into a hawkish statement and that many of these numbers point to higher inflation then the fed wants along with signs that growth may not be slowing as much as they want...Ignored
QuoteDislikedThe Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent. Economic growth has moderated from its quite strong pace earlier this year, partly reflecting a gradual cooling of the housing market and the lagged effects of increases in interest rates and energy prices.
Readings on core inflation have been elevated in recent months, and the high levels of resource utilization and of the prices of energy and other commodities have the potential to sustain inflation pressures. However, inflation pressures seem likely to moderate over time, reflecting contained inflation expectations and the cumulative effects of monetary policy actions and other factors restraining aggregate demand.
Nonetheless, the Committee judges that some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Susan S. Bies; Jack Guynn; Donald L. Kohn; Randall S. Kroszner; Sandra Pianalto; Kevin M. Warsh; and Janet L. Yellen. Voting against was Jeffrey M. Lacker, who preferred an increase of 25 basis points in the federal funds rate target at this meeting.
QuoteDislikedThe Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent. The moderation in economic growth appears to be continuing, partly reflecting a cooling of the housing market.
Readings on core inflation have been elevated, and the high levels of resource utilization and of the prices of energy and other commodities have the potential to sustain inflation pressures. However, inflation pressures seem likely to moderate over time, reflecting reduced impetus from energy prices, contained inflation expectations, and the cumulative effects of monetary policy actions and other factors restraining aggregate demand.
Nonetheless, the Committee judges that some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Susan S. Bies; Jack Guynn; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; Sandra Pianalto; Kevin M. Warsh; and Janet L. Yellen. Voting against was Jeffrey M. Lacker, who preferred an increase of 25 basis points in the federal funds rate target at this meeting.
Quoting BurgerKingDislikedAugust 8
September 20
From the above FOMC Statements, are the highlighted paragraphs the ones that indictate Hawkishness? And I should look at such on the forthcoming FOMC as sign to buy USD vs GBP, EUR?
Where can I get the text of the statement when it is released? Do I get it here? http://www.federalreserve.gov/fomc/Ignored
Quoting danegg7DislikedSo, the dollar is up on hopes of a hawkish fed huh? Then why in the hell is the Dow Jones up 115 points?Ignored
Quoting NewstraderFXDislikedPersonally, I think this trade has already happened. Traders have already bought into a hawkish statement from the FED. I think there is more of a potential for a reversal-traders got short in the GBP from 8800-90, 80 etc so i think that after the statement some profits could be taken.
I also think that a hawkish statement indicates a somewhat higher reading in the core PCE (the Fed's most important #)-if the $ does get sold off I think there's a good possibility for renewed $ buying so look for that...Ignored