During the 47th Annual Conference on Bank Structure and Competition the Fed Res came to a sensational conclusion: the global crisis is over so it is necessary to gradually reduce all the measures aimed at stimulating the US economy.
Not so long ago all of the respected economists kept saying that the situation was very serious and needed urgent solution (radical changes in the economic policy).
At the moment the Fed Res President Ben Bernanke is determined to maintain the key interest rate at the lowest level possible for a relatively long time, at least for the next 3 months.
The reason is simple – Bernanke considers the modest pace of economic growth to be moderate but stable, hoping that the labor market will support the growth by showing positive statistics. According to him, the focus will be on reducing the budget deficit, which will require avoiding any radical steps because these steps will need financing.
Judging by all the mentioned above, we can conclude that the US is not going to make any “show” in the global markets because everyone knows that the interest rate is the magic tool the Fed Reserve uses to influence the markets.
Since the conference EURUSD has been retracing against the uptrend of the last 3-4 weeks.
The Department of Volume Analysis,
