MasterForex Broker
Experienced member
- Messages
- 1,036
- Likes
- 0
Overview of the main economical events of the current day - 31/10/2013
FOMC Didn’t Bring Any Surprise but Dollar Rose
The US dollar rose on Wednesday after the results of FOMC meeting although it was traded downwards all day before it. No changes in the monetary policy were made and almost nothing changed in the final statement in comparison with the former meeting – though the Fed marked some improvement in American economic state. Probably the market participants expected a milder statement considering government shutdown earlier this month.
The voting was over with the result 9-1and the estimate of economic state was almost unchanged. High market rates were not mentioned in the statement but housing market slowdown was marked. Although the Fed marked that the US economic recovery was still unstable, it also said about economic activity growth and weakening downward risks. Besides, the Fed didn’t exclude the possibility of QE tapering this year already.
The Fed again kept a low profile concerning bond purchase program wishing to see more evidence of economic situation improvement. The last employment report again showed a disappointing Employment Change growth in September. ADP Non-Farm Employment Change for October released on Wednesday turned out worse than expected. ADP Employment Change rose only by 130 thousand although a growth by 150 thousand was expected. Prior month data were revised for the worse by 19 thousand to 145 thousand. The indicator has been falling for 4 months in a row.
The euro was traded upwards at the beginning of the day but then it fell. German labour market data met expectations on the whole. Unemployment rate in October stayed at 6.9% and German Unemployment Change grew by 2 thousand while no changes were expected. According to the Reuters, 44 of 59 economists believe that the ECB would announce a new program of long-term refinancing operations. They think that interest rates will stay unchanged till early 2015.
Euro-Zone Economic Sentiment Indicator in October rose to 97.8 compared with 96.9 in September showing the highest reading since August 2011. Spanish economy went out of 2-year recession – in the third quarter the GDP of Spain grew by 0.1% in comparison with the prior quarter, which coincided with the released estimate of the Bank of Spain last week.
New Zealand dollar rose after the decision of the Reserve Bank of New Zealand to keep the key interest rate unchanged. RBNZ governor Wheeler said that rate increase could be necessary next year considering high house price inflation. But the terms and the scale of rate increase will depend on the housing market situation. Wheeler said that despite a high rate of New Zealand dollar was still a problem, it allowed the central bank to show a high flexibility regarding further rates increase.
FOMC Didn’t Bring Any Surprise but Dollar Rose
The US dollar rose on Wednesday after the results of FOMC meeting although it was traded downwards all day before it. No changes in the monetary policy were made and almost nothing changed in the final statement in comparison with the former meeting – though the Fed marked some improvement in American economic state. Probably the market participants expected a milder statement considering government shutdown earlier this month.
The voting was over with the result 9-1and the estimate of economic state was almost unchanged. High market rates were not mentioned in the statement but housing market slowdown was marked. Although the Fed marked that the US economic recovery was still unstable, it also said about economic activity growth and weakening downward risks. Besides, the Fed didn’t exclude the possibility of QE tapering this year already.
The Fed again kept a low profile concerning bond purchase program wishing to see more evidence of economic situation improvement. The last employment report again showed a disappointing Employment Change growth in September. ADP Non-Farm Employment Change for October released on Wednesday turned out worse than expected. ADP Employment Change rose only by 130 thousand although a growth by 150 thousand was expected. Prior month data were revised for the worse by 19 thousand to 145 thousand. The indicator has been falling for 4 months in a row.
![oct_adp.png](/proxy.php?image=http%3A%2F%2Fmasterforex.com%2Fuseruploads%2Fimages%2Foct_adp.png&hash=07a46bfa2be114d434ebd4006c66af70)
The euro was traded upwards at the beginning of the day but then it fell. German labour market data met expectations on the whole. Unemployment rate in October stayed at 6.9% and German Unemployment Change grew by 2 thousand while no changes were expected. According to the Reuters, 44 of 59 economists believe that the ECB would announce a new program of long-term refinancing operations. They think that interest rates will stay unchanged till early 2015.
Euro-Zone Economic Sentiment Indicator in October rose to 97.8 compared with 96.9 in September showing the highest reading since August 2011. Spanish economy went out of 2-year recession – in the third quarter the GDP of Spain grew by 0.1% in comparison with the prior quarter, which coincided with the released estimate of the Bank of Spain last week.
![oct_esi.gif](/proxy.php?image=http%3A%2F%2Fmasterforex.com%2Fuseruploads%2Fimages%2Foct_esi.gif&hash=df1b154ae12203f5a75c5b791c1cbc21)
New Zealand dollar rose after the decision of the Reserve Bank of New Zealand to keep the key interest rate unchanged. RBNZ governor Wheeler said that rate increase could be necessary next year considering high house price inflation. But the terms and the scale of rate increase will depend on the housing market situation. Wheeler said that despite a high rate of New Zealand dollar was still a problem, it allowed the central bank to show a high flexibility regarding further rates increase.