Thursday 7 April 2016

The only element

The Federal Open Market Committee (FOMC) Meeting Minutes are a detailed record of the committee's policy-setting meeting held about two weeks earlier. The minutes offer detailed insights regarding the FOMC's stance on monetary policy, so currency traders carefully examine them for clues regarding the outcome of future interest rate decisions. Last night, FOMC minutes pushed  US markets higher as the dollar dropped. The stronger greenback is making the matter difficult for USAexporters as their profit margin is constantly being squeezed. Now the weaker dollar will be a good sign for US corporate earnings.
The rebound in oil prices on the back of the crude inventory data has provided a much needed lifeline for the energy sector. However, traders are questioning whether it can last until the OPEC members meet in Doha.
 The Japanese Yen has fallen below the critical level of 110. Traders are hoping that the currency will be weaker.

The only element which may keep investors on the edge, will be the weak global growth, which could have a massive impact on the earnings.

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