Tuesday, July 14, 2009

How often and when does the fed update their rate?

And what other economic data release do you think has substantial impact on the EUR/USD pair? ie non-farm payroll , unemployment rate, trade balance, what else? I am a fundamentalist trader and would like to exchange thoughts with others. :)



How often and when does the fed update their rate?yes loans





The Federal Reserve%26#039;s Open Market Committee (FOMC) meets eight times a year. Whether interest rates are going to be changed at a meeting is entirely up to the FOMC.



As to the data that has substantial impact on the EUR/USD pair, trade is not a big issue for this particular exchange rate. More than half of U.S. international trade is with Canada, Mexico, Japan, China, and the UK. The euro zone is a minor trade partner of the U.S.



To gain some insight into the EUR/USD dynamic, you need to look at disparities in real interest rates (nominal interest rate minus inflation) and yield curve slopes. This can be done based on data from government bond markets, which are available continuously.



You could also dump the structural approach to exchange rate forecasting altogether and use a non-structural approach (ARMA or ARIMA modeling) to forecasting exchange rates.



How often and when does the fed update their rate?

loan



The following link will show you when they meet.|||you can visit these sites:



http://www.economy.com/dismal/



http://www.dailyfx.com/



for more analysis of economic data ,you can submit in



www.saxobank.com or www.ac-markets.com and use free information.|||You sound like you already know more that I can write in this answer, but I%26#039;ll try to answer your main question.



Currently, the Feds are raising rates to curb inflation. They do not want the value of our dollar to drop compared to the euro, yen, or whatever, which it is doing. The problem is that if they raise rates too quickly or too much they will be directly responsible for a recession. So right now is a very delicate time for Bernanke. If next month, each month the feds meet to decide the rates and talk about the economy, Bernanke raises rates, he may start a recession. If Feds hold rates and Bush keeps funding wars with our printing press, inflation is inevitable. What a spot to be in. Seems that Greenspan retired just in time.

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