What Does the Economic Reaction to the End of QE1 Mean for the End of QE2?

By Fx Solutions, PRNE
Tuesday, July 12, 2011

NEW YORK, July 13, 2011 -


 

Two key economic questions face Forex traders right now.
Firstly, how weak is the American economy? And secondly, how will
it be affected by the end of the Federal Reserve’s Treasury $600
billion
bond buying program?

Joseph Trevisani, Chief Market Analyst of online href="www.fxsolutions.com/">foreign exchange broker FX
Solutions ( href="www.fxsolutions.com/">www.fxsolutions.com/),
assesses the situation: “While economic activity is difficult to
predict, we do have a standard for comparison. QE1 ended in April
2010
. We can look at how several indicators fared from April until
that August 27th when the Fed announced its surprise QE2 policy. It
is not a comfortable comparison.”

“The record of the ISM indices will provide the view of
established businesses and the National Association of Independent
Business Index (NFIB) the same for small and newly formed
organizations,” continues Mr Trevisani.

“The New York, Philadelphia and Chicago Fed indices chart
anecdotal information for their areas. Industrial production,
capacity utilization and GDP look at the overall economy and the
four week moving average of initial jobless claims and Non-Farm
Payrolls (NFP) will observe the labor market. In addition I will
chart the performance of the Dow and S&P averages over last
summer.”

Forex traders also wishing to analyze forthcoming developments
can learn more about FX Solutions’ comprehensive charting offering
at href="www.fxsolutions.com/learning-tools/charting.asp">www.fxsolutions.com/learning-tools/charting.asp

Find out more about FX Solutions at href="www.fxsolutions.com/">www.fxsolutions.com/

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About FX Solutions

FX Solutions is a leading
foreign exchange broker with a focus on advanced trading
technologies, transparency of transaction and unparalleled customer
service. FX Solutions serves retail clients, white label partners,
institutional trading partners and introducing brokers in over 140
countries.

FX Solutions’ products are regulated in the United States, United
Kingdom
and Australia. FX Solutions in the United States is
regulated as a member of National Futures Association, and
registered with the Commodity Futures Trading Commission as a
Futures Commission Merchant. In the United Kingdom, FX Solutions is
a registered trading name of City Index Limited which is authorized
and regulated by the Financial Services Authority. FX Solutions in
Australia is a registered trading name of City Index Australia Pty
Ltd. which is authorized and regulated by the Australian Securities
and Investments Commission.

For more information, please visit href="www.fxsolutions.com">www.fxsolutions.com  href="www.fxsol.co.uk">www.fxsol.co.uk and href="www.fxsolutions.com.au">www.fxsolutions.com.au

 

Contact: Paul Cassidy, FX Solutions, +1-201-345-2210, pcassidy[at]fxsol.com

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