empty
31.08.2011 05:50 PM
Fundamental market review for August 31, 2011

 

The US dollar dropped versus the Yen and euro during the Asian trading session on Wednesday as investors have been discussing the likeliness that growing pessimism over the US economic prospects will contribute to stable low Treasury Bonds yield in the long run. The US dollar is very likely to weaken further as the yield of the Treasury Bonds is declining which is a signal of worse consumer sentiment and business climate in relation to the world’s largest economy, Nomura Trust and Banking senior dealer Hideki Amikura says. Such expectations gained support of Federal Reserve Bank of Chicago president Charles L. Evans: he made comments suggestive of inclination to a milder policy. He insists on a necessity to continue implementing the programme of quantitative easing. In early August the US central bank discussed a series of unconventional tools to sustain the economy. Yet some regulators called for new dramatic measured to take in order to stimulate fading recovery. Before promising to keep the interest rate near zero level at least up to 2013, the Federal Reserve System checked its current funds, including relation of the interest rate to the unemployment level or inflation rate.
The FRS actions may be assessed at its next meeting slated for September 20. Investors will be relieved at the US unemployment rate on which the data is due for release this week.
Automatic Data Processing is to publish the data on working places in the US private sector in August. According to the median forecast of economists the number of working places is to grow by 100 000 as compared to the previous month. Chief currency strategist at Barclays Capital Masafumi Yamamoto says that the data may well fall short of the expectations. It will urge market participants to sell the US dollar and prefer the Yen shelter-currency to it.

 

This image is no longer relevant

 

InstaForex Analyst,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

No Progress in Negotiations

This week, the European Union and the United States made no significant progress in resolving trade disputes, as officials from President Donald Trump's administration indicated that most of the U.S

Jakub Novak 18:48 2025-04-16 UTC+2

XAU/USD. Analysis and Forecast

Gold continues to draw investor attention, particularly in times of heightened uncertainty in financial markets. Trade Uncertainty: Ongoing uncertainty in trade relations between the U.S. and China makes gold

Irina Yanina 11:50 2025-04-16 UTC+2

USD/CHF. Analysis and Forecast

The USD/CHF pair is attracting new sellers today, showing signs of weakness under current economic conditions, driven by several key factors. Weak U.S. Dollar: The U.S. Dollar Index, which tracks

Irina Yanina 11:41 2025-04-16 UTC+2

Time works against market

Time is not on Donald Trump's side, nor the side of the US stock market. The longer the uncertainty surrounding White House policy drags on, the more likely it becomes

Marek Petkovich 11:39 2025-04-16 UTC+2

Confrontation Between the U.S. and China Will Negatively Impact Markets (Potential for Renewed Declines in #NDX and Litecoin)

Market optimism, fueled by Donald Trump's active manipulation of the tariff narrative, was short-lived. Traders remain focused on the escalating tensions between the U.S. and China following the U.S. Department

Pati Gani 11:34 2025-04-16 UTC+2

What to Pay Attention to on April 16? A Breakdown of Fundamental Events for Beginners

A few macroeconomic events are scheduled for Wednesday, but some important reports will be released. However, the current key issue is not the reports' significance but how the market will

Paolo Greco 07:06 2025-04-16 UTC+2

GBP/USD Overview – April 16: The Pound Sees No Limits

On Tuesday, the GBP/USD currency pair continued its upward movement. Although this rally was not as strong as last week's surge, the British pound kept rising steadily, with barely

Paolo Greco 03:35 2025-04-16 UTC+2

EUR/USD Overview – April 16: The Euro Stalls Awaiting New Tariffs

The EUR/USD currency pair mostly remained flat throughout Tuesday. Although both pairs are in an upward trend, the euro and the British pound have recently not been trading in sync

Paolo Greco 03:35 2025-04-16 UTC+2

EUR/USD. Gloomy ZEW Indices Put Pressure on the Euro

The euro reacted negatively to the ZEW indices released on Tuesday, which reflected growing pessimism in the European business environment. The key indicators dropped into negative territory for the first

Irina Manzenko 01:08 2025-04-16 UTC+2

The Euro Scared Itself with Its Own Momentum

The euro's surge to the area of three-year highs became possible thanks to Germany's fiscal stimulus, Donald Trump's trade policy, and a capital outflow from North America into Europe. When

Marek Petkovich 01:08 2025-04-16 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.