Economic Outlook Repair Proped Euro. The euro touched a 14-month low versus the U.S. dollar over the euro zone's improving outlook and expectations that the Federal Reserve will maintain ultra-loose policy. Positive German economic data and some sign of recovery in the European banking sector will also increase the expectations of solving the crisis in the region. The euro has the potential to continue to rally if the Fed, at the end of the two day meeting tomorrow, signaling quantitative easing will not end this year.
"Despite last month's meeting minutes showed policy makers disagree about how the continuation of QE, the majority of traders still believe if QE will not be completed by 2013," said Matthew Lifson, senior analyst and trader at Cambridge Mercantile Group in Princeton, New Jersey. "If it happens, and the Fed's statement this week goes in this direction, then the selling pressure on the U.S. dollar will obviously increase."
Bernanke Looks to Buy Assets sum of $ 1.14 Trillion In 2014
The latest round of bond purchases by the Federal Reserve chairman Ben S. Bernanke will reach $ 1.14 trillion before he ended the program in the first quarter of 2014, according to estimates of economists surveyed by Bloomberg. Bernanke will stimulate the economy by purchasing mortgage bonds amounting to $ 40 billion / month, and Treasuries amounted to $ 45 billion / month, according to a survey of 44 economists, even some Fed officials warned that the unprecedented expansion of trade balance would reduce efforts to tighten policy when needed. "To get to the point where Bernanke will feel comfortable, you have to have a series of good, solid economic reports, but it's not what you'll get" this year, said Eric Green, head of research at TD Securities Inc.. in New York and former New York Fed Economic
Aussie Performance Data Boost Confidence
Aussie has appreciated versus 14 of its 16 major counterparts after the data showed business confidence in Australia rebounded in December. Based on the results of a survey of more than 500 companies that conducted the National Australia Bank Ltd., The business confidence index rose to third from the previous -9, rising sentiment strongest since October 2001. Business conditions index, which is the benchmark recruitment, sales and profits, also improved to -4 from the previous -6.
"Much of the change in sentiment is likely a result of improvements in the financial and stock markets," said NAB chief economist Alan Oster. "But whether this optimism is relatively resilient to early this year? It remains to be seen more."
"Despite last month's meeting minutes showed policy makers disagree about how the continuation of QE, the majority of traders still believe if QE will not be completed by 2013," said Matthew Lifson, senior analyst and trader at Cambridge Mercantile Group in Princeton, New Jersey. "If it happens, and the Fed's statement this week goes in this direction, then the selling pressure on the U.S. dollar will obviously increase."
Bernanke Looks to Buy Assets sum of $ 1.14 Trillion In 2014
The latest round of bond purchases by the Federal Reserve chairman Ben S. Bernanke will reach $ 1.14 trillion before he ended the program in the first quarter of 2014, according to estimates of economists surveyed by Bloomberg. Bernanke will stimulate the economy by purchasing mortgage bonds amounting to $ 40 billion / month, and Treasuries amounted to $ 45 billion / month, according to a survey of 44 economists, even some Fed officials warned that the unprecedented expansion of trade balance would reduce efforts to tighten policy when needed. "To get to the point where Bernanke will feel comfortable, you have to have a series of good, solid economic reports, but it's not what you'll get" this year, said Eric Green, head of research at TD Securities Inc.. in New York and former New York Fed Economic
Aussie Performance Data Boost Confidence
Aussie has appreciated versus 14 of its 16 major counterparts after the data showed business confidence in Australia rebounded in December. Based on the results of a survey of more than 500 companies that conducted the National Australia Bank Ltd., The business confidence index rose to third from the previous -9, rising sentiment strongest since October 2001. Business conditions index, which is the benchmark recruitment, sales and profits, also improved to -4 from the previous -6.
"Much of the change in sentiment is likely a result of improvements in the financial and stock markets," said NAB chief economist Alan Oster. "But whether this optimism is relatively resilient to early this year? It remains to be seen more."
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