Expectations for the Fed meeting and the Summit of Heads of State
February 23rd, 2010
This week it is expected that the dollar continues to fall, losing positions against the euro.
After a brief spike at the beginning of the week, fell again on Tuesday against the euro in new annual lows. Thus, the euro traded at 1.48 dollars.
For now, the market bet that the meeting of the American Federal Reserve (Fed), which takes place between Tuesday and Wednesday will not result in a change of policies pursued by the U.S., and therefore the types continuing interest of between 0 and 0.25%.
Fed is expected to provide, at the end of the meeting, some hints about when to begin withdrawing extraordinary measures launched to address the crisis, but is
not expected to happen in the short term, in fact, entity is expected to maintain its ultra-loose monetary policy until mid-2010. The caution with which traditionally serves the U.S. monetary authority will take to keep rates unchanged and to delay any action until the economic recovery gains strength.
Much more interest awakens the Summit of Heads of State and Government of the G20 which begins Thursday in Pittsburg (USA), in which it is expected that decisions on the direction you should take the global economy.
The need to realign the global economy involves a process in which very probably require a weaker dollar.
Tags: dollar, the economic, the global economy.