Tuesday, June 23, 2009

Analysts on the upcoming Fed meeting

According to analysts of Credit Suisse, the direction of movement of the U.S. dollar will depend on the Fed meeting, with the bank declined to a negative prognosis. In Credit Suisse believes that the problem of the dollar at the moment is the concern of market participants about the ability of the Fed to fight inflation, especially in conditions of maintaining the quantitative easing policy. The Fed can, to some extent, to reassure the market, but in the bank to doubt that statement will be quite strong leadership to ensure U.S. support. Meanwhile, Goldman Sachs believes that the growth in demand for equities and crude oil more influence on American currency than the meeting of the Fed and the ECB's operations for debt consolidation. According to bank analysts, given the assurances by the two major central banks in the world that the cheap financing to continue for some time, risky assets can regain the position. Influence the outcome of the Fed and the ECB for the euro / dollar may depend largely on how to behave risk and commodity currencies. Given this, Goldman Sachs has continued to recommend buying euro / dollar, from the level of 1.39.

No comments: