Forex news, dollar rate. The Chairman of the US Federal Reserve System Ben Bernanke has claimed that additional monetary incentives are to be taken for the decline in unemployment rate. Such measures include the third stage of quantitative easing program, longer periods of minimal interest rates, and defining the major terms required to increase the cost of funding.
The rate of economic recovery in the USA was highly overrated. US economic growth is expected to happen very slowly. B. Bernanke supposes that it is connected with lasting debt crisis in Europe. Thus, the predicted GDP in the USA in 2012 has dropped to 2.5 – 2.9%, in comparison to the forecast in June 2011, when it amounted to 3.3 – 3.7%. The unemployment rate, on the contrary, has been reconsidered towards rising. It is predicted to rise from 7.8 – 8.2% to 8.5 – 8.7% by the last quarter of 2012.
The US FRS will continue the operation called Operation Twist. This operation foresees setting additional terms for the redemption of FRS bonds in order to lower long-term interest rate.
The intention of the US Monetary System to set the interest within the range 0 – 0.25% has also been confirmed. This level, according to preliminary data, will remain till mid 2013.
Dollar rate is within the zone of flat, the start of which was analyzed in the overview issued on November 04, 2011. According to the experts of the Department of Masterforex-V Trading System , the wave level of correction is rising; namely, wave B is going to move upward to the level of wave С. As soon as the wave maximum of 77.84 is passed, pivot MF 79.98 and the maximum of 80.43 will remain the resistance of wave C. However, if the minimum of 74.86 is passed, long-term bear wave A/B will be formed.
