Say goodbye to QE3
30.10.2014
The euro/dollar falls against the decision of the Federal Reserve to close the QE3 incentive program.
Everything happened as it should have happened. Financial flows, which then gradually ceased to trickle money, sooner or later had to dry out, especially as the US economy looks good compared to their European neighbours or the Asian partner. The labour market is raised, the toxic mortgage securities have been purchased - and then, you are on your own.
That's right - the US Federal Reserve has fully performed its function, and there is an effect, which is difficult to argue with. And the time chosen for the full wrap up of QE3 is quite successful. The US economy has a margin of safety - for example, through measures to support the industry sector. This, incidentally, is a sensible idea to be implemented, most likely, with the Fed’s money. There is no difference, but the US economy now looks more confident than a year ago, and that's a plus.
That's why the dollar is actively growing for major traded currencies, including the euro. The spread between the Fed rate and the ECB is about to grow - and then the Eurocurrency will test the 1.22 figure and below.
RoboForex Analytical Department
Everything happened as it should have happened. Financial flows, which then gradually ceased to trickle money, sooner or later had to dry out, especially as the US economy looks good compared to their European neighbours or the Asian partner. The labour market is raised, the toxic mortgage securities have been purchased - and then, you are on your own.
That's right - the US Federal Reserve has fully performed its function, and there is an effect, which is difficult to argue with. And the time chosen for the full wrap up of QE3 is quite successful. The US economy has a margin of safety - for example, through measures to support the industry sector. This, incidentally, is a sensible idea to be implemented, most likely, with the Fed’s money. There is no difference, but the US economy now looks more confident than a year ago, and that's a plus.
That's why the dollar is actively growing for major traded currencies, including the euro. The spread between the Fed rate and the ECB is about to grow - and then the Eurocurrency will test the 1.22 figure and below.
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.