Oct 30 2007
The USD Floats - Ahead of Tomorrow’s Expected Rate Cut
The fate of the greenback will continue to be questions today, as the decision to cut interest rates by the Fed is imminent. Halloween (Wednesday October 31st), of all days looks to be the one that will see the US Federal Reserve make, what has become nothing short of an obvious move regarding the US economy. Though the dollar remained relatively unchanged yesterday, investors continue to expect the fall of the greenback.
Today will see the release of two key reports that are anticipated to add to the gloomy US economic picture. Firstly, the release of the S&P/ Case-Schiller National Home Price Index is expected to give negative results for the eighth month running. The report measures the changes in prices of single-family homes within 20 major metropolitan cities, and will most probably contribute to the falling trend of the greenback. One hour later at 14:00 GMT, we will see the release of the Consumer Confidence report. Expectations are equally as disappointing; as the report is set to hit 11-month lows and solidify the Feds need to cut rates.
The past weeks have been historic, with the greenback hitting all-time lows against its European counterpart. While traders prepare for the Feds statement we shouldn’t expect any drastic changes in recent trends, as the greenback continues to suffer.
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