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by Ashraf Laidi
Posted: Feb 22, 2010 5:00
Comments: 2338
Posted: Feb 22, 2010 5:00
Comments: 2338
Forum Topic:
USD
Discuss USD
I wonder, why does FOMC not officially announces this hike at an important event, acessible for everbody , but leaves it up to rumours 2 days later ?
Dollar rising across the board amid DEALER TALK of Fed DISCOUNT RATE HIKE TALK is pushing up USD.
RATIONALE: Discount rate now at 0.75%, which is 50 bps above Fed funds, well below the 100-bps spread prevailing before the beginning of the easing cycle (Aug 2007 discount rate cut).
Such reasoning helps address the question on why the Fed opted for an inter-meeting rate hike in February. The agenda of the Fed may have been to raise the discount rate by 25-bps in each of Feb, March and April (or June).
Ashraf
there is the beginning of a correction in tokyo. five wave down move
The market is now bearish against usd, after yesterday's fomc .. at least it looks like..
But, as far as the usdx is above 79,20, should we, who are usd bulls, still be confident in our opinion?
Because, when fomc didnt try to hike rates, or even didnt mention anything in the way of leaving those always mentioned cliche words "extended period of time" etc., I truly want to believe, they left that room for next months meeting..
As for the discount rate..
i remember, last month when they hike this rate, it wasnt planned, or it wasnt even in their schedule, or even mentioned before. No one ever spoke about it..
Can they just hike whenever they want or it has to be announced, that they r gonna decide whether yes or not..?
thanks
http://bit.ly/aVtRUA
Ashraf
10475 might be a support level for dow jones