hr: Currency

Photo Credit: kevindooley

The week ahead offers traders and investors an array of economic news that highlights the Federal Open Market Committee decision regarding its monetary policy Wednesday afternoon.

The majority is expecting the Federal Open Market Committee to relax its policy by approximately 25 basis points to 2.0%. The Federal Open Market Committee is also expected to maintain its policy for the rest of the year starting after its granting of an aggressive cut-rate, which is hurting the dollar.

The reason for all this is the FOMC’s increasing confidence in the US dollar. This prompted the FOMC to end the cutting back of interest rates and to concentrate instead on the task of curbing the rising inflation.

The dollar made it to an all time high in two weeks against the Japanese yen trading at 104.79 as well as against euro trading at 1.5590.

While it remains to be seen whether the latest rebound of the US dollar will hold out in the long run, officials in the Euro-zone are beginning to become uneasy with the current trend, and are expressing concerns over the dwindling value of the euro.

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