The fed new tem****ary program can solve the liquidity problems of
the
sub-prime mortgages in compensate of treasury bonds. The markets
were
in wait for the action and directly pushed Dow future about 280
points
giving sup****t to the greenback in a back trust wave of taking risk
on
a stemming off these causing problems of the current US slowdown
growth and credit crunch as recently the housing and crediting
problems weakened the lending operations between bank exacerbating
the
credit conditions and the join action can give back stability and
trust after the mortgage exposure loses. There are expectations
currently that the worse of the crediting problem has become behind
of
us after the news. The funding action can lower the market
expectations of further aggressive cuts by the fed but the market is
still expecting further cuts to stimulate growth may be in a slower
pace than what was expected by the 200bln funding actions and the
central banks new coordination.
Excessive trading volatility conditions contained the forex market
after the news but the greenback could get benefits especially
versus
the Japanese yen as an equity market surge and trust to take risks
on
the central banks actions but the single currency is expected to
hold
much of its gains as the recent upbeating ZEW figures which rose to
-32 in March which indicate that the main ECB worries should be the
current above 2% target inflation rate as the good news came after
better than expected IFO figure last month shows improvement in the
germane economy and optimism that the growth will be as potential as
what the ECB Member Weber ensured.
By God's Will, we want to see later this week, Feb US retail sales
which is expected to be negatively impacted by the consuming
slowdown
to grow by a slower pace than last month by just.2% m/m and also by
the end of the week US Feb CPI as an im****tant indicator of the
inflation outlook as weak rate can help the fed to continue its
easing
pace and shows the negative impact of the slowing demand as what
Fed's
vice president Kohn has expected recently just by the up breaking of
1.50.
Best wishes
FX-Recommends
FX Consultant
Walid Salah El Din
E-Mail: mail@[EMAIL PROTECTED]
