FOMC cuts Fed Funds Rate to 4.75%
Malam tadi Jam 9.15 Malam [Egypt Time] ada Fed Interest Rate Decision atau Interest Rate Statement bagi base currency USD.
Sedutan news economic dari Fxstreet plak..
FOMC cuts Fed Funds Rate to 4.75%
Tue, Sep 18 2007, 18:31 GMT
FXstreet.com (Barcelona) – The Federal Open Market Committee aggressively started today a new easing cycle after more than four years with an half-point reduction in its benchmark federal funds rate down to 4,75%, hoping to ease the credit crunch.
In a statement, the FOMC said the action “was necessary to forestall some of the adverse effects on the broad economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time.” The Fed said that some inflation risks remain. It said the credit crunch could hurt the economy.
Komen di Efxnow…
16:21 [UTC Time]US data starts out on Monday with the July NY Fed Empire manufacturing index, currently forecast to pull back from 25.8 to 18.0. Tuesday sees June PPI, May TIC report, June industrial production and capacity utilization, IBD/TIPP economic optimism survey, and the NAHB housing market index for July. Wednesday sees June CPI, June housing starts and building permits, and Fed Chair Bernanke’s semi-annual testimony to the House, to be repeated before the Senate on Thursday. Thursday sees initial weekly jobless claims, June leading economic indicators, July Philadelphia Fed index, and the release of the June 28 FOMC minutes in the afternoon. Additional Fed speakers are KC Fed pres. Hoenig on Tuesday and Chicago Fed’s Moskow on Thursday. Sumber dari http://news.efxnow.com/
Data yang dikeluarkan adalah Previous 5.25% Forecast 5.00% Actual 4.75%
Nilai Forecast < Nilai Previous = Bad News..biasanya untuk data interest Rate Statment kita akan bandingkan nilai ramalan [forecast] dengan nilai Previous..
Melihat pada situasi tersebut menunjukkan bahawa USD lemah.
Sedutan Chart GBP/USD Timeframe 1H…2 hari aku float 1 post buy..sampai ratusan -pips …so malam ni dengan meloncat naik ratusan pips dpt lah abik profit skit..
Dollar Sold off after 50bps Rate Cut from Fed
Dollar is sharply lower to new record low against Euro and new 30 year low against Canadian dollar after a somewhat surprised 50bps cut from Fed. FOMC voted unanimously to lower the federal funds rate by 50 basis points to 4.75%, the first cut since 2003. Also, the discount rate was lowered further today by 50 basis points to 5.25%, after being lowered by 50 basis points on Aug 17. Tighter credit conditions are noted as weighing on the housing market and the broader economy. Uncertainty surrounding the outlook has increased. Though core inflation has improved, the statement only describe that as ‘modest’ and said that inflation risks remains. Further adjustments in the near future is still possible. As said in the statement, the committee will continue to assess the developments and “act as needed to foster price stability and sustainable economic growth.”
Technically speaking, EUR/USD resumed recent rally and is now heading to 1.40 psychological resistance. USD/CHF should also completed recovery and is heading to test last week’ low of 1.1801. GBP/USD rebound strongly to above 2.0000 level again, but a break of 2.0365 resistance is needed to confirm rise from 1.9652 has resumed. Otherwise, short term outlook will remain neutral. Commodities currencies, including Aussie, Kiwi and Loonie also surge against the greenback.
The USD/JPY, on the other hand, is steady as the Japanese yen is pressured in yen crosses across the board on return of risk appetites US stock markets surge on the news of Fed’s rate cut.
FOMC Statement of 50bps Cut in Fed Funds Rate
The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 4-3/4 percent.
Economic growth was moderate during the first half of the year, but the tightening of credit conditions has the potential to intensify the housing correction and to restrain economic growth more generally. Today’s action is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time.
Readings on core inflation have improved modestly this year. However, the Committee judges that some inflation risks remain, and it will continue to monitor inflation developments carefully.
Developments in financial markets since the Committee’s last regular meeting have increased the uncertainty surrounding the economic outlook. The Committee will continue to assess the effects of these and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Charles L. Evans; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; William Poole; Eric Rosengren; and Kevin M. Warsh.
In a related action, the Board of Governors unanimously approved a 50-basis-point decrease in the discount rate to 5-1/4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Boston, New York, Cleveland, St. Louis, Minneapolis, Kansas City, and San Francisco. http:// http://www.actionforex.com