The Federal Reserve is to meet up today at 19:15 to review its monetary stance.

[RTFX-Trading]

The Federal Reserve is to meet up today at 19:15 to review its monetary stance. Currently, purchases of U.S. assets are experiencing a landslide decrease. Market members are expecting the committee to leave its strategy unchanged at .25%. However, there are still many uncertainties regarding the details of non-US policies. The EUR / USD is expected to remain in the 1.2950 - 1.3075 range.

Purchase of U.S. assets has shrunk dramatically over the past period. The most recent net capital inflow (TIC) figures show that non-U.S. investors have withdrawn $148 billion of U.S. funds over the last year. This followed a period of record inflows for the U.S. throughout 2006 and 2007. Also, following the protectionist strategy suggested by the current U.S. government, the U.S. has adopted new laws on foreign workers. Further, China is beginning to doubt whether it should purchase more U.S. treasury bonds. It is expected that capital output outside the U.S. should trigger a long-term influence on the U.S. dollar.

Nicolas Longchamp


RTFX Ltd
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