Forex $5 account opening - ACFX: With the slowdown of economic growth and the rebound of unemployment rate, the Federal Reserve will launch a new...

by acfx0001 on 2011-08-18 14:47:30

Market Review:

With the slowing of the U.S. economic growth and the rebound in unemployment rate, voices for the third round of quantitative easing (QE3) have been heard continuously. On August 9, the Federal Reserve announced that it would maintain interest rates unchanged and admitted for the first time that ultra-low interest rates would be maintained until mid-2013. The market interpreted this as the Federal Reserve paving the way for new stimulus measures. The chairman of the Atlanta branch hinted that the Federal Reserve would purchase more government bonds to help the economy return to a normal track. However, all actions by the Federal Reserve must follow Chairman Bernanke's orders. For this reason, the global central bank's annual meeting held in Jackson Hole, Wyoming by the Federal Reserve has drawn more attention from the market, with $100 given for opening a foreign exchange account. Chairman of the Federal Reserve, Bernanke, will deliver a speech on economics and monetary policy at the global central bank party held in Jackson Hole, Wyoming on August 26. The market expects whether the Federal Reserve’s future series of policies will include the third round of quantitative easing measures. At last year's annual meeting of the global central banks held in Jackson Hole on August 26, to avoid the U.S. economy falling into a double-dip recession, Bernanke hinted that the Federal Reserve would introduce the second round of quantitative easing policy (QE2). More than two months later, the Federal Reserve announced on November 4 that it would purchase $600 billion worth of government bonds. The world's largest bond fund, before the meeting held in Jackson Hole, Wyoming, faced a tough discussion in response to the slowdown in U.S. economic growth. People no longer ask if the Federal Reserve will do something, but rather doubt whether what the Federal Reserve does will have an effect. The Federal Reserve knows that the U.S. economy is facing recession risks, and also knows that these risks are increasing. I am not sure whether the Federal Reserve can act more quickly. If the U.S. economy continues to slow down, the Federal Reserve may purchase more government bonds or adjust its asset portfolio. If additional action is needed, I can guarantee that the Federal Reserve will not run out of ammunition. Expanding the balance sheet or changing the Federal Reserve's asset portfolio can be done, and once the economy retreats into contraction, where to open a foreign exchange account, these will be very effective, especially when on a sufficient scale. The U.S. is experiencing a severe economic slowdown, deleveraging is still ongoing, and it is not surprising that economic growth is below long-term average levels. But importantly, we do not believe that the U.S. is entering a new wave of recession. Burns said that the Federal Reserve's future actions will depend on economic data performance, and regardless of whether QE3 is implemented, it is expected to mainly improve the employment market and boost economic growth, which will greatly help restore market confidence. Goldman Sachs reiterated on Tuesday that the Federal Reserve's third round of quantitative easing policy is imminent, and included QE3 within the scope of market research benchmarks. At the same time, Goldman Sachs reduced its forecast for U.S. economic growth in the second half of this year and next year. In any case, from our expectations, the bond market has already begun a mild recession, which will further prompt the Federal Reserve to take action. Now, the economic backdrop and U.S. financial conditions are urging the Federal Reserve to launch QE3.

Operation Diagram:

The euro retreated after being resisted at 1.4510, and is expected to be supported at 1.4333 before continuing to rise. It is suggested that investors buy euros at the level of 1.4333 if the euro retreats.

The US Dollar Index is still fluctuating between 74.16 and 73.36 in the short term. Continue to short the dollar and buy euros when the index adjusts back to 74.16.