Market Insights – Fed’s Projections and the Economics – May 16, 2012
On April 25th, the Federal Reserve met during their regularly scheduled meeting as it was announced their key benchmark interest rate would remain unchanged at record lows. Furthermore the ‘Fed’ released their projections as to how they believe the economy will perform in the year 2012’. As we’ve previously discussed the Fed’s projections as well as the impact of stimulus to global markets, here we will consider the effects of the multiple rounds of stimulus to the very data the Fed analyzes in making their decision to adjust interest rates as well as the possibility of further stimulus measures. In other words, monetary stimulus is applied to improve economic conditions. As conditions improve, the Fed in turn is less likely to add more stimulus, and perhaps more likely to increase interest rates. Conversely, as conditions deteriorate the Fed is less likely to increase rates and perhaps more likely to enact addition rounds of stimulus. Below we will discuss the relationship between stimulus, the economy, and the Fed’s likely future actions. The following are the 3-primary efforts taken by the Fed once interest rates were reduced to record lows, and further economic stimulus was deemed necessary.
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4Xlounge Fundamental Xtras – CAD Unemployment – May 11, 2012
Earlier today it was reported the Unemployment Rate in Canada rose to 7.3% from 7.2% the previous month, despite very encouraging jobs data. Over the long-run Canada's Unemployment Rate tends to in the opposite direction as stocks found in the TSX index, and in the same direction as the USD/CAD pair. Join us for our Live Trading Sessions hosted every Monday and Friday from 8-10 am EST.
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4Xlounge Market Insights – Fed’s Projections – part II – May 7, 2012
The 4Xlounge Market Insights discusses a number of the most significant economic reports released on a regular basis as we aim to anticipate their possible implications to the Forex currency pairs most actively traded. At their most recent meeting, the Fed released their projections as to how they believe the economy will perform this year. Here we will compare their estimates to the actual results of the most recent economic reports, as our goal is to anticipate the Fed’s next move and ultimately the next probable trend in the USD currency.
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4Xlounge Fundamental Xtras – USD Unemployment – May 4, 2012
During the US trading session, the Unemployment Rate was reported to have declined from 8.2% to 8.1%. Over the long-term the US Unemployment Rate tends to move in the opposite direction to US stocks as well as the USD currency. Join us for our Live Trading Sessions every Monday and Friday from 8-10 am EST.
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4Xlounge Live Trading Session – May 4, 2012
During today's Live Trading Session we discussed a number of topics including the impressive move lower the AUD/JPY & NZD/JPY enjoyed following the US NFP figure released today. Using the 4Xlounge Market Barometers and long-term charts we can position ourselves to take advantage of these long-term moves in the Forex market. Join us for our Live Trading Sessions hosted every Monday and Friday from 8-10 am EST.
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4Xlounge Market Insights – EUR/NZD – May 3, 2012
The 4Xlounge Market Insights discusses a unique currency pair from a fundamental perspective analyzing each currency and the most significant economic events that tend to help create the long-lasting trends that occur in the Forex market. Today we will consider two key fundamental events that directly pertain to the EUR/NZD.
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4Xlounge Fundamental Xtras – NZD Unemployment – May 3, 2012
Earlier today it was reported in New Zealand the Unemployment Rate rose to new highs of 6.7% not seen since 2010'. Over the long-term New Zealand's Unemployment Rate tends to move in the opposite direction to stocks found in the NZGI as well as the NZD/USD pair. Join us during our Live Trading Sessions hosted every Monday and Friday from 8-10 am EST.
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4Xlounge Market Insights – EUR/AUD – May 2, 2012
The 4Xlounge Market Insights discusses a unique currency pair each day from a fundamental perspective, making note of the most widely watched economic reports as we search for correlations between their data and the markets’ most likely reaction. Today we will look to 2-significant fundamental events that correspond with the EUR/AUD.
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4Xlounge Fundamental Xtras – EUR Unemployment – May 2, 2012
Earlier today it was reported that the Euro-area Unemployment rate rose to 10.9%, which represents highs not seen since 1997. Over the long-term the EUR Unemployment rate tends to move in the opposite direction as stocks as well as the EUR currency. Join us for our Live Trading Sessions hosted every Monday and Friday from 8-10 am EST.
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4Xlounge Market Insights – Special Report! – Fed Projections, part 1. – May 1, 2012
The 4Xlounge Market Insights discusses a number of the most significant economic reports released on a regular basis as we aim to anticipate their possible implications to the Forex currency pairs most actively traded. At their most recent meeting, the Fed released their projections as to how they believe the economy will perform this year. Here we will compare their estimates to the actual results of the most recent economic reports, as our goal is to anticipate the Fed’s next move and ultimately the next probable trend in the USD currency.
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