ES Journal Archive (2009 - 2010)
- Thread starter Jahajee
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What effect will missing or beating the GDP estimates have on the dollar?
http://online.wsj.com/article/BT-CO-20091028-718348.html
However, if U.S. GDP comes in much stronger than the 3.2% increase that a majority of economists expect, the dollar could also gain, as investors would see that possibly prompting the Federal Reserve to tweak the language of its statement when it meets next week.
Michael Woodford, a Columbia University professor of political economy and member of the 18-strong Monetary Policy Advisory Panel for the Federal Reserve Bank of New York, said in a Dow Jones Newswires interview Wednesday that the Fed could remove the reference to keeping rates low for an "extended period." That phrase has been in place since late 2008.
Investors would read that as a signal that rates could rise quicker than expected in the U.S., boosting the low-yielding dollar against the euro and other higher-yielding currencies.
"The dollar could be poised to benefit from a strong reading of GDP, especially if markets begin to see the improved economic performance as bringing in the timeline for eventual Fed policy normalization," said Omer Esiner, senior market analyst at Travelex Global Business Payments in Washington.
Might be dangerous to short the dollar no matter what.
http://online.wsj.com/article/BT-CO-20091028-718348.html
However, if U.S. GDP comes in much stronger than the 3.2% increase that a majority of economists expect, the dollar could also gain, as investors would see that possibly prompting the Federal Reserve to tweak the language of its statement when it meets next week.
Michael Woodford, a Columbia University professor of political economy and member of the 18-strong Monetary Policy Advisory Panel for the Federal Reserve Bank of New York, said in a Dow Jones Newswires interview Wednesday that the Fed could remove the reference to keeping rates low for an "extended period." That phrase has been in place since late 2008.
Investors would read that as a signal that rates could rise quicker than expected in the U.S., boosting the low-yielding dollar against the euro and other higher-yielding currencies.
"The dollar could be poised to benefit from a strong reading of GDP, especially if markets begin to see the improved economic performance as bringing in the timeline for eventual Fed policy normalization," said Omer Esiner, senior market analyst at Travelex Global Business Payments in Washington.
Might be dangerous to short the dollar no matter what.
we've been following the eur/usd for months, the reason we might pop in the morning is the eur/usd hit a supp line at the same time the spus hit the 1040 area of support ,normally this would mean a bounce off of support, Ben seems to have taken a vacation form holding up the us market , possibly to stop the slide in the dollar. The gdp is made up of about 75% us customers spending, that has obviously dropped off drastically ,reason for a big selloff, so which # is more important
1040.00 is not support 1024.00 is "support".
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