USD Rebounds On "Rapid Reversal"

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USD Rebounds On "Rapid Reversal"

By Grace Cheng on February 21, 2008 | More Posts By Grace Cheng | Author's Website

According to the FOMC minutes, the Fed’s voting members noted "when prospects for growth had improved, a reversal of a portion of the recent easing actions, possibly even a rapid reversal, might be appropriate". They said a low rate "now appeared appropriate for a time". They agreed that inflation was likely to moderate in coming quarters. Well, I’m not so sure

about the last part. Oil touched $100 yesterday and US CPI have ticked higher. However, they could raise rates again, like they noted in the FOMC minutes, which could give USD some support.

In the forex market, USD/CHF has to break above 1.1060 in order to target 1.1120 next, and if the latter is broken, the currency pair could gain more bullish steam.

Thursday:

Swiss trade balance 0715 GMT

Eurozone CPI 0745 GMT

Swiss producer and import prices 0815 GMT

Eurozone current account 0900 GMT

UK retail sales 0930 GMT

US initial jobless claims 1330 GMT

US Philly Fed 1500 GMT

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