FOMC Still Open Opportunities Increase In December

The US dollar was strong in two and a half month highs against the currencies of major-currency on Thursday (29/10) this morning after the US Federal Reserve is still an opportunity to hike interest rates in December. By contrast, the European Central Bank (ECB) expected strong it will add stimulus.

The latest confirmation of the Fed early this morning about their plans leading to tighter monetary policy, strong enough to push the US dollar index to a high level of 97 818, the highest level since August 10.

FOMC Not Raise Interest Rate
In accordance with expectations, the FOMC last night did not make any changes to their benchmark interest rate. However, the members of the FOMC committee still provide clues to the likely rise in interest rates in December.

"... in determining whether to feasible to raise the target range (interest rate) at the next meeting, the Committee (FOMC) will evaluate the progress that has been realized -good or diekspektasikan- toward the goals of maximum employment and inflation of two per cent," FOMC statement said.

After the FOMC statement, the US Dollar was looming and overthrow the Euro to 1.0896 and the current position of this news ditilis, EUR / USD steady at 1.0928 position. Sementera USD / JPY pops up as much as 0.62 per cent through the level of 121.16. Pound sterling positions slipped 0.18 per cent to 1.5626 and USD / CHF rocketed to 1:05 percent to 0.9949 figure.

In addition to the FOMC policy, the focus of the market is also divided by the US economic data released this week until next week. Data on the US trade deficit was recorded at the level of 58.6 billion US dollars more narrow than the previous deficit at 67.2 billion US dollar figure.


Great possibilities December
According to Daisuke Uno, strategist at Mitsui Sumitomi interviewed by Reuters, the Fed statement in late October FOMC is interpreted varies. However, for those who believe a rate hike in December, it is a signal that the Fed increasingly paved the way for raising interest rates at the end of this year.