Archive for August, 2009
The Fed Leaves Rate Unchanged At FOMC August Meeting
The FOMC meeting was held yesterday, 12th August 2009, and the fed decided to leave the interest rate unchanged. According to learningmarkets
The unchanged rate was no surprise to the markets which had placed the probability of a rate change at nearly 0% as indicated by the Fed Funds Futures price action.
The Fed led off the statement by saying it sees a “leveling out” in economic activity and indicated that substantial resource slack in commodities is likely to keep inflation down. The Fed did say, however, it expects the economy to remain weak for a time.
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The economy is recovering, but the fed wants to see recovery in the financial market. The financial market is the back bone of the economy.
The FOMC meeting usually have an effect on the market.
During the American section, GBPJPY looked like was looking bullish on the 4 hr timeframe. It wwas going up, but the FOMC disrupted the bullish trend. After the metting, the 4 hr candle closed was a doji meaning indecision.
Unemployment Rates Drops In July
The unemployment rate was released on Friday, 7th August. The unemployment rate was 9.4%. The unemployment rate for June was 9.5%. And it was forecast that the rate for July would be 9.6%, but the analysts were wrong. It came out to be less than the forecast, and it was lower than June rate. This means that the U.S economy is getting better.
Traders were expecting the results to be bad. You can see why I am saying this (look at the charts).
