Forex Broker---- According to the minutes of discount rate released by FED on Tuesday (July 20th), 10 regional FED voted to maintain current discount rate. Regional FED chairman pointed out signs of the moderate recovery of the economy. Meanwhile, the chairman emphasized to be cautious for the economic outlook. It is predicted that business recruitment will still be subdued. The chairman expressed worries against the risks triggered by local governmental finance.
Meanwhile, statistics released by the US Commerce Department show that the number of June newly started houses, adjusted by seasonal elements, is 549 thousand, 5.0% down, and lowest since October, 2009.
In addition, the US president Barack Obama and British Prime Minister Cameron reaffirmed their commitment to fiscal responsibility and reform. Posen, member of MPC, BOE, said that the new budget dragged back the economy by far less than 1% of British GDP. Rate hike before the end of the year cannot rule out possibility.
A forex analyst commented on Tuesday that due to the continuous weak US economic data, the dollar would not be likely to rise against major currencies in future several weeks. As a matter of fact, a fatigue dollar may just be what the US government hoped for, as it would do good to stimulate economic recovery.
In the first 4 months of 2010, US export increased for nearly 17% compared with last year. A more competitive US forex price will only help to maintain the export-growth-oriented economic policy. According to the economic idea of Obama government, forex dealers will have adequate reasons to believe that, to sustain economic recovery, USD depreciation is logical. Technically speaking, the US dollar short-term pressure on the top position is in the vicinity of 83.00, and is hard to stand above it in a short term.
Currently, the US dollar short position is obvious; short-term energy is still releasing. Important USD support lies near 81.30, which is also where the dollar Fibonacci 50% retracement line lies. ---Forex Broker: Ikonfx