after the FOMC

welcome :)

A few minutes ago we got to know FOMC Statement regarding the the U.S. economy and the possibility of cutting QE in the nearest future.

FOMC Statement

Before we get to the statement, I present a forecasts investment banks regarding cutting QE

Goldman Sachs: It is possible to strengthen or change forward guidance, but it is more likely at the December meeting.

BofA: During the meeting, no decisions will be taken there, FOMC members have suggested that cutting QE3 for now came out of the calendar. After this meeting more interesting will be discussion record in minutes.

Citi: This meeting will bring nothing, our economists expect that the cut will be made ​​by September next year.

Credit Agricole: we expect the first small cut in January.

In the opinion of the investment banks will see a very large variation. Which means that the market is light haos and no one really knows what to expect. Any decision may be some kind of surprise. It is known one, the volatility in the markets will certainly increase.

Now some important facts from today's FOMC Statement

The Communication does not introduce any new changes.

- "We need more evidence of improvement in the economy before cutting QE3";

- "Interest rates remain very low before the unemployment rate at 6.5%";

- "The economy is improving at a moderate pace".

According to the recommendation from 27th October,I still recommend short positions in the EUR/USD

more info: click here

regards,

oscarjp

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