The EUR/USD and Cable (GBP/USD) headed north today, Thursday on interest rate hike that took many by surprise after the European Central Bank and Bank of England both raised interest rates by 0.25 percentage. This was a move to tighten up control on inflation.
The Bank of England surprised the markets with a quarter-point rate hike, taking interest rates to 4.75 percent to slowdown accelerated growth. The Euro zone to 3.0 percent also.
In sharp contrast, the U.S. Federal Reserve is nearing the end of its tightening cycle and this have been weighing on the dollar.
In the ECB’s statement after rates rise the bank President Jean-Claude Trichet he said “.. monetary policy in the euro zone is still accommodative and that further rate increases will be needed if the bank’s economic assumptions are confirmed. “
These factors created a buoyant mood in the forex market today that blew the roof off within ten ~ fifteen minutes of the news. If you were on the right side, great gain with limited work.
Happy Trading
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Tags: Cable, eur, Euro and Sterling Took Flight On Rate Hike, EURUSD, gbp, GBPUSD, inflation, interest rates, monetary policy, USD
We are grateful for your visit today. Have you considered "Getting instant updates" whenever we post? Get connected on the latest market trends. Be the first to know. Enter you email on Big guy's chest on the right.
If you enjoyed this post, make sure you subscribe to my RSS feed!
Popularity: 16% [?]
Tags: Currency, monetary policy, CableRelated posts
- Categories
-
Leave a Reply
You must be logged in to post a comment.
Great blog buddy!
You can find more infomation in our forex related site
http://marketivaforex.com/
Thanks
regards
Marketivaforex.com