The U.S.
Federal Reserve held an unscheduled, closed meeting in Washington yesterday.
This caused a frisson of excitement among some market participants, who are
extremely sensitive to anything at all that comes out of the U.S. central bank,
or the mouths of its board and other members.
In the
event, the meeting seems to have been about U.S. bank deposit rates, which dictate
interest payment on the monies that banks leave on deposit with the Fed on an
overnight rate basis. Nothing came from the meeting that caused any movement in
those currency pairs that have the Greenback as a component.
U.S. GDP today
A monthly report
that can have the effect of creating volatility is that on U.S. Gross Domestic
Product. This comes out today at 13:30 GMT. It is one of the main reports that
the Fed has in mind when it states that the decisions to be made with regard to
interest rates in the U.S. are “data dependent”.
The Forex
market seems to be anxiously waiting for developments to unfold with regard to
interest rates in the U.S. This is also a holiday week stateside, with
Thanksgiving on this coming Thursday. For this reason we have a holiday
shortened week and smaller volumes of trade, all of which can lead to
unpredictable behaviour.
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