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Overview of the main economical events of the current day - 19/12/2013
Fed Started QE3 Tapering
US dollar sharply rose this Wednesday after the announcement of the results of the December FOMC meeting, during which it was decided to reduce the QE by $10 billion per month, to $75 billion. The reduction of the programme will be started by the Fed in January. This decision was undertaken due to the positive dynamics of the US labor-market and its forcoming perspectives. At the same time the Fed is ready to continue tapering at further meetings if the macroeconomic forecast will prove itself to be correct.
The key rate was also confirmed to stay at its present level 0-0.25% till the unemployment rate is higher than 6.5%, and the inflation rate is no more that 2.25%. The economic forecast was raised up to “moderate”. The results of the voting were 9-1. Eric Rosengren, Boston Fed President, voted against this decision referring to the fact that this decision was premature.
The FOMC refreshed forecast of GDP growth, inflation and unemployment rate was published this Wednesday. FOMC members lowered the unemployment forecast for 2013 and next years. The inflation rate forecast was also lowered for the upcoming year. The economic growth rate forecast was also a bit improved for next several years. The target unemployment level 6.5% will be probably reached in 2014; and in 2015 – one year earlier than it was planned before – the unemployment level will be lower than 6%.
Fed chairman Ben Bernanke during the last press-conference announced that he expected further recovery of the US economy and its confident rise. Bernanke expressed confidence in the fact that US job creation will be endured, and he specially emphasized the appearance of the new signs of consumers’ expenditures growth. Henceforth QE tapering is going to be held at a rate planned in December which was found moderate by the Fed governor.
This Wednesday the US senate approved the settled by mutual concession budget for the nearest 2 years, which is going to be helpful to avoid a new shutdown of the US government financing from January 15, 2014. The published data for US appeared to be quite positive as well. Housing Starts increased by 22.7% till the maximum rate over the last 6 years – 1.091 houses – this fact significantly exceeded the expectations. The building permits fell less than it was forecasted.
Only the pound demonstrated the rise Vs the US dollar this Wednesday and renewed its annual maximum after the publication of positive British labor-market report. Exceeding the expectations the unemployment claims decreased by 36.7 thousand. The unemployment level according to the standards of International Labor Organization (ILO) decreased to 7.4% between August and October, which is the floor from April, 2009. In previous 3 month it was 7.6%.
German IFO Business Climate rose to 109.5 p. in December from 109.3 p. in November as it was predicted. The December index was the highest from April, 2012. IFO Current Assessment fell, whereas IFO Expectations demonstrated increase.
By MasterForex Company
Fed Started QE3 Tapering
US dollar sharply rose this Wednesday after the announcement of the results of the December FOMC meeting, during which it was decided to reduce the QE by $10 billion per month, to $75 billion. The reduction of the programme will be started by the Fed in January. This decision was undertaken due to the positive dynamics of the US labor-market and its forcoming perspectives. At the same time the Fed is ready to continue tapering at further meetings if the macroeconomic forecast will prove itself to be correct.
The key rate was also confirmed to stay at its present level 0-0.25% till the unemployment rate is higher than 6.5%, and the inflation rate is no more that 2.25%. The economic forecast was raised up to “moderate”. The results of the voting were 9-1. Eric Rosengren, Boston Fed President, voted against this decision referring to the fact that this decision was premature.
The FOMC refreshed forecast of GDP growth, inflation and unemployment rate was published this Wednesday. FOMC members lowered the unemployment forecast for 2013 and next years. The inflation rate forecast was also lowered for the upcoming year. The economic growth rate forecast was also a bit improved for next several years. The target unemployment level 6.5% will be probably reached in 2014; and in 2015 – one year earlier than it was planned before – the unemployment level will be lower than 6%.
Fed chairman Ben Bernanke during the last press-conference announced that he expected further recovery of the US economy and its confident rise. Bernanke expressed confidence in the fact that US job creation will be endured, and he specially emphasized the appearance of the new signs of consumers’ expenditures growth. Henceforth QE tapering is going to be held at a rate planned in December which was found moderate by the Fed governor.
This Wednesday the US senate approved the settled by mutual concession budget for the nearest 2 years, which is going to be helpful to avoid a new shutdown of the US government financing from January 15, 2014. The published data for US appeared to be quite positive as well. Housing Starts increased by 22.7% till the maximum rate over the last 6 years – 1.091 houses – this fact significantly exceeded the expectations. The building permits fell less than it was forecasted.
Only the pound demonstrated the rise Vs the US dollar this Wednesday and renewed its annual maximum after the publication of positive British labor-market report. Exceeding the expectations the unemployment claims decreased by 36.7 thousand. The unemployment level according to the standards of International Labor Organization (ILO) decreased to 7.4% between August and October, which is the floor from April, 2009. In previous 3 month it was 7.6%.
German IFO Business Climate rose to 109.5 p. in December from 109.3 p. in November as it was predicted. The December index was the highest from April, 2012. IFO Current Assessment fell, whereas IFO Expectations demonstrated increase.
By MasterForex Company