Wednesday, January 30, 2013

Maintain Aggressive Fed easing policy

Maintain Aggressive Fed easing policy. The Federal Reserve said the economy had "paused" in recent months, the Fed announced Wednesday that it will continue buying bonds amounting to $ 85 billion / month and keep interest rates near zero until the unemployment rate fell at least at the level of 6.5%. The central bank's decision, after a two-day meeting, in accordance with what is expected, especially after a surprise that U.S. economic growth slipped to the fourth quarter. "The Fed will keep the passion economically until they see an improvement in the labor market," said Scott Brown, chief economist at Raymond James Investment Services.

Launch BB10, RIM Blackberry Being Changed Name

Research in Motion Ltd. has officially introduced the Blackberry operating system 10 with two new handsets on Wednesday. Blackberry is the latest variant that carries the Z10 and Q10 is fully touch screen with keyboard and touch screen display. At the same CEO Thorsten Heins surprisingly also announced a change in its corporate name to Blackberry. Symbols shares traded on the stock exchange will also be changed to 'BBRY'. "The launch of this platform represents a new day in the history of the Blackberry," said Heins. "And we're also working to make changes inside and outside the company. That is why I am happy to announce that we now turn to the Blackberry." RIM seems to rely a lot on the success of the new platform. The platform is expected to help the company to start again from scratch fierce competition with Apple, Google's Android platform and Microsoft's Windows Phone.

The contraction of the U.S. economy Profitable Yen

The greenback had to cut some of the strengthening of the yen after the U.S. economy unexpectedly contracted in the 4th quarter, following the biggest drop in defense spending the last 40 years due to rising inventories and reduced household spending. U.S. GDP fell 0.1% at an annual rate, the first decline since the recession of 2007-2009. Fall is also dampen economic expectations that the U.S. Federal Reserve will end its monetary stimulus programs early.

Prevent EIA Oil Price Rate
The rate of crude oil stranded on Wednesday after reports the Energy Information Administration (EIA) shows spike in U.S. crude inventories during last week. U.S. crude inventories increased 5.9 million barrels last week, or nearly two times the expected rise by 2.9 million barrels. These results are also consistent with the data the American Petroleum Institute (API) days in advance, which showed a rise in crude inventories of 4.2 million barrels.

In the same occasion EIA also reported a decline of 1 million barrels in gasoline inventories and a decline of 2.3 million barrels in distillate fuel stocks. After the release of the data, crude oil for March delivery traded at $ 97.60 per barrel or still 0.05% above the closing price yesterday, after earlier scoring daily highs at $ 98.22 per barrel level.

Sterling Mortgage Data Recovery

Sterling rose versus the dollar after data showed an increase in mortgage approvals in the UK that are larger than expected. Based on data from the Bank of England, UK banks provide mortgage loans 55 785 in the last month, the most since January 2012. But the main focus of investors remained focused on manufacturing PMI data next Friday, which could potentially drown Sterling returned if the result indicates the economy has started the year 2013 with the bad and increase the odds of a recession 'triple-dip'.

"Sterling is not likely to be able to strengthen too much, especially ahead of PMI data next Friday," said Richard Driver, analyst at Caxton FX. "There is no good news really pushing Sterling, except for short squeeze. Hard to see further upside potential given the trader still tend to sell on rallies than buy on dips."

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