Posts Tagged: bond purchase

This has been an important week for the Euro due to the fact that there were risks according to which the European currency is going to be faced with a tremendous fall due to the fact that the sovereign debt crisis continues to be important in the region and to the speculations regarding the European Central Bank’s decision concerning the interest rates.

The decision of the European Central Bank has been taken today and it was that of maintaining the same value of the interest rates, but of expanding the program of bond purchases. The announcement of this decision has caused the Euro to fall at the beginning, but the European currency has managed to rebound afterwards. The European Central Bank has announced today the fact that it leaves its target Minimum Bid Rate at the value of 1.50 percent, decision which has been forecasted by most of the market’s analysts, even though there have been some of Read more »

The trading market has evolved in a rather unexpected way today, due to the fact that the USD started to grow against most of its major counterparts, managing to reach such growth levels as to cause the AUD to fall below parity. This comes as a reaction of the Federal Reserve Bank’s decision of purchasing bonds, which has immediately increased the interest for the US Dollar.

The US Dollar started to widely grow after the moment when the Federal Reserve Bank announced its decision of purchasing long-term securities. This decision caused an instant demand for safe-haven currencies, including the US Dollar, which completely took advantage by the situation. The Federal Open Market Committee decided to maintain the federal funds rate at the value of 0 to 0.25 percent. In its statement, the FOMC said the following: “The Committee intends to purchase, by the end of June 2012, $400 billion of Treasury securities with remaining maturities of 6 years Read more »