FX.co ★ Fundamental Analysis, August 09, 2011

The economic agenda for today and the most important would be the rate decision from the FOMC, which could cause the Fed to announce changes in monetary policy and talks on a QE3.

In the U.S. economic recovery remains tentative and downgrade the credit crunch has left large falls in equity markets. The only hope left for the stock to soar, or at least stabilize their descent, is that the Fed would indicate in its statement today any further action on monetary policy. If this were to occur, considering also that the indices are oversold, we could see an intense surge in bags, but we think that this will not be center stage.


The Federal Reserve held its meeting today on interest rates and could discuss the introduction of a QE3 after two rounds of previous purchase of bonds, which totaled 2.3 billion dollars, and have not been enough to encourage economic growth and reduce unemployment below 9%. The central bank could announce today that the economic slowdown is more persistent than expected. Policy makers could also announce that the portfolio of the Fed could remain on record for "more time" and replace the short-term securities for longer maturities to reduce the types of long-term debt. Investors believe the Fed might leave the state to encourage both the interest rate as the balance sheet or two longer.