Forexpros Daily Analysis Dec 15, 2009
Fundamental Analysis: Interest Rate Decision
The Federal Open Market Committee (FOMC) decision on short term interest rate is due out tommorow (Dec 16) in the US.
The decision on where to set interest rates depends mostly on growth outlook and inflation. The primary objective of the central bank is to achieve price stability. High interest rates attract foreigners looking for the best “risk-free” return on their money, which can dramatically increases demand for the nation’s currency.
A higher than expected rate is positive/bullish for the USD, while a lower than expected rate is negative/bearish for the USD.
Analysts forecast that the interest rate will remain at 0.25%.
This post marks my partnership with ForexPros.com, another milestone for me. I will post some analysis from them right here. Of course, I have to agree with it. No blind posting.
