Results 1 to 9 of 9
  1. #1
    Veteran Member uj.forex's Avatar

    FOMC / Bernanke's Speech !!!

    Hello there,

    Let's share out thoughts and analysis over the FOMC meeting minutes and Bernanke's Speech in this thread, which are to be concerned only with the monetary policies of the United States.

  2. #2
    Specialist Member LesterK's Avatar
    What happened on the Bernanke speech? I couldn’t follow it. Was he dovish or hawkish? What about the perspective of continuation of monetary easing policy?

  3. #3
    Legendry Member milos's Avatar
    The dollar weakened to a speech of the Federal Reserve Ben Bernanke's because of speculation that the American economy has not sufficiently recovered to move from the application of monetary incentives.By the fall of the dollar came after yesterday's St.Louis Federal reserve President James Bullard said it should continued bond buying program and president of the Fed's New York Didley Willian said that he had previously been to optimistic when it comes turnover growth.For now,the Central Bank of America maintained it's program of buying $85 billion of bonds on a monthly basis which lowers borrowing costs and encouraged economic growth.According to Bullard's likely this will be the direction of monetary policy for some time to keep despite various speculation.
    Monetary incentives like buying bonds at low interest rate have increased the liquidity of the market which encourages greater investment and employment which resulted in higher stock prices. Federal Reserve Chairman Ben Bernanke in a speech today signal a continuation of the program of monetary easing which prompted investors to once again begin to invest in the gold to protect against inflation.

  4. #4
    Specialist Member LesterK's Avatar
    Thank you milos for this commentary! It looks like the FOMC statement was pretty stable and supporting for the easing program. I think that this is good for the Euro as it will put some pressure on the US dollar, however we see totally opposite – strong dollar after the statement. That could have several different causes, but I think it is most probably overextension of the last trend down and will be compensated with movement higher in the next days.

  5. #5
    Legendry Member milos's Avatar
    Quote Originally Posted by LesterK View Post
    Thank you milos for this commentary! It looks like the FOMC statement was pretty stable and supporting for the easing program. I think that this is good for the Euro as it will put some pressure on the US dollar, however we see totally opposite – strong dollar after the statement. That could have several different causes, but I think it is most probably overextension of the last trend down and will be compensated with movement higher in the next days.
    Crude oil fell $2 per barrel.Gold has today range $1353-$1413.Big turbulence with $60.Silver dropped 1.12% too...We will see in next month how the market will react..

  6. #6
    Solid Member susan's Avatar
    Surely it is very strange but for me it is a sign that the US dollar will gain even more power and will become even stronger in the near term.

  7. #7
    Legendry Member milos's Avatar
    Federal Reserve Chairman Ben Bernanke said that the monetary policy will continue to remain fairly lenient until it is confirmed the recovery of labor force.Monetary policy has significantly influenced the recovery of the economy which is why it will continue with a program of bond buying.Since the third round of monetary policy easing began in September,the number of jobs grew.The labor market is making progress rate of long-term unemployment remains high and the inflation of consumer price low.According to the President of the Fed monetary easing reserves of the program will be reduced as soon as it is confirmed that the recovery of labor market to the planned level.

  8. #8
    Veteran Member uj.forex's Avatar
    absolutely susan,

    the weakening of U.S dollar was basically a short-term move.... i see USD stronger in upcoming days... moreover, many of the FOMC members are in favor of reducing the level of QE by the end of this year.... stock market already performing well....

  9. #9
    Master Member vinayakm's Avatar
    I'd like to see this thread come back since Bernanke and his speeches are going to be the hot buzz for the next couple of months or so.

    This week of course his second speech was just a reiteration of what he plans to do with forthcoming asset purchases.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
3