Forex Trading Market Summary - September 8 2011

View PDF | Print View
by: fxsolutions
Total views: 6
Word Count: 366
Date: Wed, 28 Sep 2011 Time: 2:28 AM
0 comments

FX Solutions (http://www.fxsolutions.com/) provides traders with a forex market summary on 8th September 2011, including news around the ECB, Jean Claude Trichet and Ben Bernanke.

"Asia got the ball rolling today with a risk off mood in the wake of disappointing jobs data out of Australia. Next in line was the Bank of England providing no further monetary stimulus, although it seems November could be a better month after the inflation report which gives the central bank more time to gauge the incoming data.

Up next was the ECB and Jean Claude Trichet. Although we didn't get the 25 bpts cut (30% chance ) Mr Trichet was very dovish in the press conference. Only a few months back the bank was hiking rates with strong vigilance on price pressure. This u-turn is reminiscent of the summer of 2008 when the bank raised rates only to reverse policy in the fall. ‘WE HAVE SIGNIFICANTLY CHANGED OUR APPRECIATION OF ECONOMIC SITUATION', ‘A MONTH AGO WE CONSIDERED RISKS TO GROWTH WERE BALANCED, NOT THE CASE TODAY'.

The market has now started pricing in cuts by year end with some suggesting a bold 50 bpts cut in one hit. So it looks like the ECB has learned nothing from the policy errors in 2008-2009.
The euro suffered from Mr Trichet's views and for now support is at the July low of 1.3840. But if the risk off environment continues 1.3500 is probably imminent.

Finally it was Ben Bernanke's chance to disappoint the market and although traders weren't expecting a policy announcement there was some anticipation that today's speech would contain the policy detail that had only been alluded to in his Jackson Hole talk. In Wyoming the Fed Chairman said that the Fed had the policy tools available and they would stimulate the job markets as necessary and that the FOMC would discuss the options in detail at the September meeting.

The official wait and see attitude is beginning to frustrate markets waiting for decisive action."

For free daily video market commentary from FX Solutions, visit:
http://www.fxsolutions.com/learning-tools/education-center.asp

About the Author

Forex trading involves substantial risk of loss and is not suitable for all investors.

About FX Solutions

FX Solutions is a leading foreign exchange broker with a focus on advanced currency trading technologies, transparency of transaction and unparalleled customer service. FX Solutions serves retail clients, white label partners, institutional trading partners and introducing brokers in over 140 countries.

FX Solutions' products are regulated in the United States, United Kingdom and Australia. FX Solutions in the United States is regulated as a member of National Futures Association, and registered with the Commodity Futures Trading Commission as a Futures Commission Merchant. In the United Kingdom, FX Solutions is a registered trading name of City Index Limited which is authorized and regulated by the Financial Services Authority. FX Solutions in Australia is a registered trading name of City Index Australia Pty Ltd. which is authorized and regulated by the Australian Securities and Investments Commission.

For more information, please visit www.fxsolutions.com www.fxsol.co.uk and www.fxsolutions.com.au