Sunday 18 October 2009

Euro remains equally possible

Indeed, FOMC made it clear at its meeting in June that it intends to follow a balanced policy with regard to the tightening of rates, ie with a minimum increase of 25 points. But the Committee, at the same time, keeping the door open for more aggressive steps in its policies when it stated that it would "respond to changes in economic prospects as needed to fulfill its obligation to maintain price stability." Probability of "yastrebinyh" statements by the representatives of the Federal Reserve remains significant, especially if the yield on Treasury bonds continue to decline, and will require incentives that might be too generous to the Central Bank. Although the 10-year Treasury securities reached 10-week minimum, we have seen many times this year, a strong record as one way to increase profitability, at least 20 points in 2 days. A decline in the Euro remains equally possible.

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