Monday, June 22, 2009

Week Business Agenda

During a week there will be a number of events and the publications, capable to influence the markets, including the currency market. Indeed, the major event will be the result of session of the US Federal Open Market Committee. The decision on a interest rate (likely, without surprises, the rate will remain at the level of 0,0-0,25 %) will be announced on Wednesday evening and also there text of covering message will be available. The latter is one of considerable interest. First, it will reflect FRS`s vision on current economic situation; analysts expect changes in forecasts about the terms of U.S. economy recovery. Then, it may include information concerning the monetary policy led by the U.S. government. In particular, how long still will be the repayment of state bonds. It may also include inflation issues. The key task of the Federal Reserve is to prevent inflation rally and not to waste the appropriate moment to toughen the monetary policy.

Anyway, interest rate is not likely to be reviewed in close outlook. In spite of several signals the U.S. economy keeps on being volatile and vulnerable, negative processes slow but recovery does not seem to be faced soon. In particular, unemployment rate increases, and it may reach the threshold of 10 percent, and such a state in labor market will not give ground for the FRS to raise the interest rate, as low interest rate spurs to some extent the business under these circumstances.
View the detailed information about interest rates of other countries on the website.

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