If you like me... Bookmark me!...
The Current Market Sentiment – Fx Recommends
God Willing, We wait for the language of the FOMAC assessment which is
expected to signal the slow down of consuming spending after 2 meeting… …
of omitting. They may attribute this slowdown to the hurricanes
negative impact but no way it is to be exacerbated by the measured
pace of tightening!
The currency market modern talking is the EUR interest rate outlook
which has become higher after the strong germane IFO of Oct which has
shown a rise to 98.7. The data indicate a better business climate in
Germany after the grand coalition deals which could give stability to
the markets. By God's Will, The data increased the probability of
a .25% rate hike by the end of this year which can give the single
currency strength across the broad.
These current conditions were not existing at the beginning of this
year:
1: the expectations were directed to the rate cut possibility on the
EU sluggish growth and the contraction of the manufacturing sector.
2: USD was encouraged by the rate strong outlook advantage and this
can come to an end by the beginning of next year and there is current
uncertainty right now on the new fed’s chief Bernenak’s policy which
can weigh on the greenback. He may consider the growth rather than the
inflation.
3: the inflation pressure is a ascending to unbearable levels above
the 2% inflation targets in EU and UK which increase the probabilities
of a next tightening move.
4: the rising tension in the Middle East between Syrian Iranian side
and US Israeli side and its impact on oil and gold prices.
Best Wishes
www.FX-Recommends.com
FX Consultant
Walid Salah EL Din
MOB: +20 12 4659143
MSN: fx_recommends@hotmail.com
