On one hand, Fed’s members admitted that the GDP may actually contract but on the other they were still assuming a quite vital acceleration of the GDP dynamics in 2009. We are still awaiting two important rate decisions (ECB and BoE will decide on rates tomorrow), but apart from the GBPUSD currency pair, their impact should be moderate at most. In the meantime investors try to see some hints of hope in a generally grim picture. They liked they idea of the Citigroup shedding some of its illiquid assets, even though the price will most likely be below their fair value. They were also encouraged by the better-than-expected results of Circuit City Stores – an electronic retailer.
As a result stocks in Europe and futures for the US indices are around the surface, shrugging off a sell-off in China caused by the money outflow to upcoming IPOs. The demand on the EURUSD is trying its best but unless something unexpected happens, a consolidation around 1,57-1,5750 may last until the end of the week.
Przemysław Kwiecień  |
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