Forex Blog: Currency Trading News & Analysis.

October 13th 2005

Trade data paints mixed picture of US economy

Investors seeking to clarify the Fed’s monetary policy intentions took mixed comfort in the release of August’s trade numbers. On one hand, the American trade deficit was significant, which detracts from domestic growth and could conceivably lead the Fed to hold interest rates in order to facilitate continued domestic economic growth. On the other hand, the aggregate value of imports increased at the fastest rate in over a decade, which suggests inflation will continue to be a problem. While some disagreement persists, economists believe the fed will reconcile this discrepancy by prioritizing its concerns over inflation, and it will continue to raise interest rates as planned. The Financial Times reports:

Foreign Exchange Analytics said “Oil prices are not going lower in the short-term and second round inflationary effects are guaranteed, leaving the Fed with some heavy lifting on interest rates – straight from neutral to restrictive.”

Read More: Dollar rallies after trade data

SocialTwist Tell-a-Friend
Posted by Adam Kritzer | in Economic Indicators, US Dollar | No Comments »

Sponsored Offers

FREE Daily Email Updates

Enter your email address:

Delivered by FeedBurner

Have Questions? Want to Share Your Review?

Be heard. Please share your reviews today!

Neighboring Posts

© 2004 - 2018 Forex Blog.org. Currency charts © their sources. While we aim to analyze and try to forceast the forex markets, none of what we publish should be taken as personalized investment advice. Forex exchange rates depend on many factors like monetary policy, currency inflation, and geo-political risks that may not be forseen. Forex trading & investing involves a significant risk of loss.