Risk Appetite Increases following Fed QE
Risk Appetite Increases following Fed QE
Last night the Federal Reserve Bank of America pledged to inject $600 bn into the American economy by June of next year. This has affected and strengthenedthe euro rate as investors move from the dollar into this slightlyriskier asset that offers a higher yield and therefore abetter return.
The euro has risen to 1.4155 against the dollar today. The GBPEUR rate has dipped below 1.14. We have the UK Interest Rate decision today at 12 noon GMT. I would expect no change in current fiscal policy, but this can be a market mover as investors try to anticipate changes. At 12.45 GMT we have the Eurozone Interest Rate decision and Trichet's speech at 13.30 GMT.
I would expect some volatility today on the euro asthe markets evaluatethe euro's position as a risky, yet safe haven currencyand assuming no change in interest rates I would expect tentative strength for the euro, increasing following Trichet's speech.
Those buying euros todaymay wish to get something booked earlier in the day while those selling may want to wait until following or duringTrichet's speech as he normally talks up the euro's position giving euro strength.
To find out more about short, medium and long term predictions on the euro, as well as all the other major currencies USD, GBP, ZAR, JPY, AUD, NZD, CAD, CHF, THB, HKD, TRY, SEK, NOK and more, please get in touch with the author.He is aspecialist currency broker and can offer massive savings by delivering commerical and preferential rates of exchange.
By using a specialist currency broker, such as currencies.co.uk, you can get currency rates much better than those offered by typical bank transactions. Plus you are made aware of events and movements as above that can help pinpoint peaks and troughs in the market that further maximise your transfer. Hunan Village Suspects Were Killed Postmortem Petition Continued: Police Questioned For Not Filing How To Select Professional Wedding Caterers For Your Wedding Australia's Best Shopping Locations Your Dog - American Staffordshire Terrier by:Cecily Watson Pamper Your Dog With Dog Beds Stop The Destructive Chewing Habit In Your Dog CAT Exam Hall Tips for Online CAT 2010 Examinees All About The Perfect Wedding Location Is There A Safe Way To Clean Your Dog's Teeth? Find Easy Affordable Online Pet Insurance Quotes - Get Pet Insurance Coverage For Your Loved One Buy Dog Car Baskets Online Ayahuasca Tourists How To Kill Fleas Fast With Frontline Cats Treatments