Good day to you.
The Chinese government increased their interest rates for the fourth time since November. China's monetary policymakers are taking decisions to adjust expansionary policies because the global economy is improving.
Moody Co. reduced the bond rating for Portugal again due to the increased possibility of it to request for financial assistance.
Last night the Federal Reserve committee meeting (Fomc) which held on 15 March 2011 had been published. According to the minutes, Members of the Federal Reserve Bank have announced that America's economy is slowly moving forward and if that does not increase fuel prices, inflation in the current commodity market will not create harm to America's economic growth. In this case the meeting also mentioned on the promising improvement of the employment market although the housing sector due to weak demand is still of concern.
According to reports after the release of Fed minutes, America is planning to maintain policy interest rates to zero and to move in line with the $ 600 billion economic stimulus package (qe2) for the first six months of 2011. However reports are that some members have shown a negative reaction towards a quantitative easing policy for the second half of the year.
It is worth mentioning that Ben Bernanke has acknowledged in a speech that the Fed still has the tendency of the usage of fiscal stimulus packages (qe). Also a member of the Federal Reserve of America spoke that the budget's $ 600 billion economic stimulus plan (QE2) "figure is correct and properly estimated, " and referring to the recovery of economic growth, the possibility of providing background for implementing contractionary policies in 2012 was announced.
Technical look: As you can see in the above picture, EUR/USD in H4 is within an ascending channel, In my opinion and according to the blue Andrews fork, target is 1.4450.
Do not ever forget this sentence: in the uptrend, buying on the floor. and the downtrend, sales on the roof.
Have a nice time.
Masoud.
Masoud is a businessman and a Senior Forex Koala. Connect with him at our page on Facebook.
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