Forex Investment and Currency Trading

The FOMC left the Fed Funds rate at 2.00%. The statement largely reflects the flurry of inflation
concerns raised by Fed officials following Chairman Bernanke’s comment that the Fed will “strong resists” the erosion of price expectations (June 9). BUT, although the statement reflects a hawkish undertone, it lacks an outright hawkish bias and seems to [...]

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The tension between still strong growth and higher inflation, and the consequence of higher rates will continue to define how risky assets perform going forward, in particular the relative performance of bonds versus equities. As long as the markets believe that rising bond yields are largely a by-product of good growth, not rising inflation, then [...]

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FOMC Meeting (June 24-25): Market expects the Fed to maintain its 2% funds rate target at this week’s 2-day FOMC meeting, the first time that it will keep the stance of monetary policy unchanged since last August. Its closely-watched statement will acknowledge a still weak economy and elevated
headline inflation, without tipping its hand as to the [...]

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