arenas_11
05-03-2005, 10:00 PM
The Federal Reserve on Tuesday was much less aggressive since traders expected in raising interest rates. The greenback dropped hitting on a low at approximately 50 pips. This might be a consequence of yuan speculation to some extent. Yen was scooped up by three-month yuan hit list prices and people unable, or prepared, to put money into these exotics for a wager. However, at 104.50 yen, the dollar could have gained 25 pips shortly after China's Finance Minister, Jin Renqing, declared that speculation China's yuan revaluation might be making advancement difficult. The euro climbed to 135.55 yen from 134.98.
Dollar longs could be unwinding since the Fed considers inflation will be held in check during the forthcoming weeks. The Fed could have little motive to improve the federal funds rate if inflation stays low. Since they make the dollar more attractive to investors, greenbulls often prefer high interest rates. This might have been a great indiion for investors dealing with metals. Rates of interest might not be raised, if growth continues to dip as we have seen from several indiors.
Dollar longs could be unwinding since the Fed considers inflation will be held in check during the forthcoming weeks. The Fed could have little motive to improve the federal funds rate if inflation stays low. Since they make the dollar more attractive to investors, greenbulls often prefer high interest rates. This might have been a great indiion for investors dealing with metals. Rates of interest might not be raised, if growth continues to dip as we have seen from several indiors.