Fed Is Ready to Watch and Wait The Federal Reserve lowered the federal funds rate 25 bps to 2.00% and reduced the discount rate 25 bps to 2.25%. The Fed is ready to watch and wait. There were broad hints than the June24-25 meeting is likely to close with no change in the federal funds rate. Fed Presidents Plosser and Fisher dissented again and would have preferred to leave the federal funds rate at 2.25%. With respect to economic growth the FOMC policy statement now reads as “[r]ecent

Dollar Falls after Fed Cuts Rates 25 Basis Points and Signals Pause The dollar fell against most major currencies on Wednesday after the Federal Reserve cut interest rates 25 basis points and said “[t]he substantial easing of monetary policy to date, combined with ongoing measures to foster market liquidity, should help to promote moderate growth over time.” The Fed’s statement indicates that the Fed now sees more balanced risks to the US economy. The Fed cited both downside risks to the

With the data now at hand, I perceive that the Canadian dollar has a very good chance to turn significantly weaker versus the US dollar. I see that process starting soon, and then unfolding impulsively over several months. Early next week I’ll briefly document the premises of such a perception.

With the data now at hand, I perceive that the Canadian dollar has a very good chance to turn significantly weaker versus the US dollar. I see that process starting soon, and then unfolding impulsively over several months. Early next week I’ll briefly document the premises of such a perception.

4/30/2008 3:20 PM: EUR/$..1.5616 $/JPY..103.90 GBP/$..1.9880 $/CHF..1.0359 AUD/$..0.9446 $/CAD..1.0058 FOMC Cuts, Outlook Unclear The dollar was mixed following the FOMC’s announcement to cut rates by 25-basis points to 2.0%. The Fed reiterated that economic activity remains weak, while “household and business spending has been subdued and labor markets have softened further”. The Fed expects lingering tight credit conditions and the “deepening housing contraction” to weigh on growth over the

The USD fell off its perch today as the Fed voted to cut rates by an additional 25 bps to 2.00%, and signaled that additional rate cuts would be made as needed, largely fulfilling the markets expectation of a ‘one and done’ move from the Fed.  However, the Fed’s economic assessment pointed to ongoing US weakness, noting that economic activity remains ”weak” and that labor markets have ‘’softened further.”  The overriding impression is that the US downturn will be longer and deeper

Conquer : Zero Line Cross Buy entry at 20:00 GMT on 4.29.2008 The trade has moved +189 pips into profit so far and we now have some breathing room between the Zero Line. Sure makes trading the Fed easy when you take the emotion out of trading.

Again Plosser and fisher opposed the majority preferring no change. This was not out of expectation but the statement has referred this time to inflation to be moderate. The decision to cut by .25% was widely expected. The fed did not surprise the market again. The greenback can find support as the statement is looking cheering this time than before and it appreciates the inflation upside risks again expecting it to moderate and in line with expectation cutting by just .25% can signal a close