Major Market Mover: U.S. Economists Pulled The Trigger

Daily Forex Fundamentals | Written by Crown Forex | Jul 23 08 06:59 GMT |

As markets were calm since the beginning of the week, U.S. economists could not just stand there and watch markets take a rest from a long journey, the U.S. treasury secretary and Mr. Plosser a voting member in the FOMC boosted the Dollar with optimistic and hawkish comments. While Mr. Paulson tried to restore confidence back in the economy and in the fi-nancial system, he tried to show what parts everyone has to play in this crisis, he almost managed to do that on the short term, and he managed to give the dollar and incredible boost, while Mr. Plosser was extremely hawkish when talking about the economy, marking inflation risks as a major concern, and signaling a rate hike by the end of the year 2008. Markets took those comments, and they reacted accordingly, stocks climbed massively yesterday, breaking some very important level to the upside, while the U.S. dollar was saved by the bell, from around its lowest levels against the Euro and the pound. In the FX market, things always change, so we have to roll with them, I know it was supposed to be a very calm week with less and less focus on the big picture, but that fact has been tainted, and now we have to adopt a new strategy of total awareness in the markets. Today, the Bank of England will announce their minutes on their last meeting where interest rate was kept steady at 5.00%, while speculations are increasing to see a rate cut soon, so investors will be looking through the minutes trying to figure something out. And you dear reader, keep your eyes and ears open, as you can't take a rest in the FX market, you need to watch everything around you, in order to stay well alert and to secure your trading… Crown Forex disclaimer:The above may contain information for investors/traders and is not a recommendation to buy or sell currencies, gold, silver & energies, nor an offer to buy or sell currencies, gold, silver & energies. The information provided is obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. I am not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trading currencies, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, gold, silver &energies presented should be considered speculative with a high degree of volatility and risk.