Markets and reactions in forex
December 22nd, 2009
The markets are reflecting on the planned actions of the U.S. Federal Reserve, resulting in a dollar eased in Asian forex markets today.
As reported at 2:49 pm (JST) in Tokyo, the dollar index remained relatively flat, trading at 76.407. DXY, down from 6-week high reached last week.
Analysts expect the Federal Reserve will continue to embrace a pacifist tone, and make little mention of recent strong economic data.
The two-day meeting begins today's politics, and although most market players do not believe that a change in interest rates is close, they are interested in reading the spin that the central bank puts on the latest news is optimistic.
Adding to investor caution will be the launch today of the November figures U.S. producer
prices and industrial production, as well as the National Association of Homebuilders and the housing index for this month.
In Australia, recently concluded meeting of central bankers in the country that made the Australian dollar lower at $ 9.9128, down 0.5% after yesterday's equivalent increase.
The Reserve Bank of Australia said the decision of the bankers to raise interest rates by 25 basis points was a delicate balance and for maintaining an appropriate fiscal policy due to improving economic conditions.
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