Forex Notes

Frozen Americans - Fundamental view

At last, the market began to stir, and we saw the fluctuations of currencies in response to another batch of messages from officials. It worked and representatives of the euro zone, and Ben Bernanke and Mervyn King. The Fed chief made it clear that the Central Bank in the near future is not going to drastically change its fiscal policy. Nonetheless, Bernanke said that "at some point in the future, the Fed will have to tighten financial conditions, raising the short-term interest rates." He explained that the Fed may raise the discount rate "shortly" as one of the stages of "normalization," the Fed monetary policy, although this step is not any signal of a change in the prospects for monetary policy. Thus, these words clearly say one thing: the Fed with small steps closer to the exit from the regime to stimulate the economy.

With regard to the report on the trade balance, here we have not seen anything good. U.S. trade deficit in December showed an unexpected rise, as rising imports of gasoline was considerably lower in export volumes. Indicator deficit widened to an annual maximum of $ 40.2 billion from $ 36.4 billion in November. Imports increased by $ 8.4 billion, while exports reached a record from October 2008 to the first $ 142.7 billion