Thread: Will Fed Do The Unexpected And Leave Rates Unchanged!!

We can observe following week no rate cut, if so, omg where will proceed Euro week! 300 pips downside in few hours it is a situation that is possible!
1.4440 could be the EurUsd best for next 12 Months.
My bet it is for rate unchanged!
I hope so, since I have many shorts from 1.4180.

I understand I am almost the only one with this bet, but my Crystal ball is shinning!!

I doubt the fed will leave rates unchanged

Originally Posted by ;

We can observe next week no fed rate decrease, if so, omg where will go Euro next week! 300 pips drawback in few hours it is a situation that is possible!
1.4440 could be the EurUsd top for next 12 Months.
My bet it is to get rate unchanged!
I hope so, since I have many shorts from 1.4180.

I know I am virtually the only one with this bet, but my Crystal ball is shinning!!

What are the reasons for no shift?

Perhaps it is time to scalp the equities Markets! Just Kidding!

Some Comments by FOMC Members are showing some emerging divisions!

AND

Do not forget Christine Lagarde Comment Beware 1 way wager

ECB will act next year if Euro don't begin to reverse, that is for certain!!
They'll begin to cut rates!

There is the possibility to see today just a reverse to 1.38 and then see Euro again at 1.46 at the end, but in my own opinion 2008 we'll see 1.20's again.

Originally Posted by ;

ECB will act next year if Euro do not start to reverse, that's for sure!!
They'll start to cut rates!

A task of a central bank isn't to control currencies evaluation through interest rate. From an economist perspective, currency rates are still an efect of monetary policies determined by these (central banks).

Cuting rates only for the euro to drop is like changing a hole automobile of a flat tyre. There are hundreds of means a central bank has to influence it is currency, but once my oppinion, adjusting interest rate to fit the currency view, it.

Interest rate are increased/cut to correct the bussines cycle(aka fight inflation and make a wealthy future for it's country)

Hope I helped...

Originally Posted by ;

A task of a central bank is not to control currencies test through interest rate. From an economist perspective, currency rates are still an efect of monetary policies determined by them(central banks).

Cuting rates just for the euro to drop is similar to changing a pit automobile of a flat tyre. There are hundreds of means a central bank has to influence it's currency, but once my oppinion, adjusting interest rate to fit the currency view, it.

Interest rate are increased/cut to adjust the bussines cycle(aka fight inflation and make a wealthy future for it's nation )

Hope I helped...

Sure you help,

Thus, what you are telling me is that Fed will cut rates next week to make a rich future for his country.
Wall Street will for sure thanks Mr.Bernanke for not forgot them!!

Well, if FED Cuts rates and Dollar sunks, maybe if ECB do the same that they are able to Sunk Euro also, am I right!
This EurUSd worth it is artificial, there's something behind it, USA desire it to be similar to that and just because Europeans leaders are still weak!
Big European corporates have started to be hurt due to powerful Euro.

Let's see exactly what market will do in case the cut will be just for 25 points.
Perhaps Mr.Bernanke next time cuts all at once for 2008! :

bye

Originally Posted by ;

Sure you help,

So, what you're telling me is that Fed will cut rates next week to make a wealthy future for his country.

I am not telling you the Fed will cut rates, all I am telling is that the euro-zone will not cut rates only to adjust eur/usd value

Can the Fed cut or cut rates? Whatever the circumstance, the suspense convinced is murdering the markets. :

We really do not understand exactly what the Fed is thinking, but the current U.S. Existing Home Sales is more than enough evidence that a rate cut is necessary. The U.S. economy is definitely slowing down, and although a rate cut might not stop a recession, it may help make the inevitable a delicate, tender whiplash rather than a tough, brutal concussion.

The Fed will be crazy to not lower interest rates. We need to spur consumer spending. With the price of oil only
days away from $100 a barrel as well as the mortgage catastrophe looming, we need some
economic growth. I can't see any inflationary pressures in this moment. My
bet is for the Fed to lower rates by 50 points...

The FED will cut and they'll do it difficult. 50 BP.

They have no other option. BTW: The US want a lower dollar as it lowers their obligations , too.

Regards -