Category: FX Recommends
- Published: 17 December 2008
- Written by Editor
The surprising Fed interest rate cut yesterday has dampen the attractiveness of the greenback across the broad. The single currency could break above 1.40 easily and it is now trading around 1.41. the market was expecting a cut by just .5% and but the cut to just .25% has made a shock as it shows that the economic situation is sever and in a very sack of liquidity. The fed has tried to show that it is to do whatever needed to stimulate growth in spite of its interest cut to nearly a zero right now to inform the market that the fed's role is not over right now.
It is expected to see USD being back after its recent massive decline in a profit taken wave accompanied with the market increased expectations of further interest rate cuts in Europe and UK following US which can cut some European currencies buying.
Recently we have mentioned that the it is a matter of time to watch them above 1.30 and 1.5! as the turn now to the Fed to cut for the same reasons there can be under pressure after the recent Fed's cut in the coming days.
Best wishes
FX Consultant
Walid Salah El Din
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