The News / Hottest Related

2014-10-29 18:00 GMT (or 19:00 MQ MT5 time) | [USD - Federal Funds Rate]

• past data is 0.25%
• forecast data is 0.25%
• actual data is 0.25% according to the latest press release

if actual > forecast (or actual data) = good for currency (for USD in our case)

[USD - Federal Funds Rate] = Interest rate at which depository institutions lend balances held at the Federal Reserve to other depository institutions overnight. Short term interest rates are the paramount factor in currency valuation - traders look at most other indicators merely to predict how rates will change in the future.

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Federal Reserve calls end to QE3

The US Federal Reserve has announced the formal conclusion of its latest bond-buying program, commonly referred to as QE3, while reaffirming plans to hold interest rates at current levels for a "considerable time".

The US central bank said it would make a final $US15 billion taper to its quantitative easing program from next month, concluding a 10-month process that has seen it gradually reduce its bond buying from $US85 billion.

The widely expected move came at the end of a two-day meeting of the Fed’s policy-setting Federal Open Market Committee (FOMC), with market eyes now shifting to the central bank’s view on the US economy and outlook for rate hikes.

“The committee judges that there has been a substantial improvement in the outlook for the labour market since the inception of its current asset purchase program,” the Fed’s statement read.

“Moreover, the committee continues to see sufficient underlying strength in the broader economy to support ongoing progress toward maximum employment in a context of price stability.

“Accordingly, the committee decided to conclude its asset purchase program this month.”

“The committee anticipates, based on its current assessment, that it likely will be appropriate to maintain the 0 to 0.25 per cent target range for the federal funds rate for a considerable time following the end of its asset purchase program this month,” the Fed advised.

“However, if incoming information indicates faster progress toward the committee's employment and inflation objectives than the committee now expects, then increases in the target range for the federal funds rate are likely to occur sooner than currently anticipated.

“Conversely, if progress proves slower than expected, then increases in the target range are likely to occur later than currently anticipated.”

The Janet Yellen-led central bank noted that the US economy had expanded at a "moderate" pace since its last meeting in mid-September, while the underutilisation of labour resources was "gradually diminsihing" and long-term inflation expectations remained "stable".

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The full text of the Federal Reserve’s policy statement.

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EURUSD M5: 97 pips price movement by USD - Federal Funds Rate news event:



USDJPY M5: 85 pips price movement by USD - Federal Funds Rate news event :



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This is GOLD (XAUUSD):

The unemployment rate in Japan came in at 3.6 percent in September, the Ministry of Internal Affairs and Communications said on Friday - in line with expectations and up from 3.5 percent in August.

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Patrick Barron continues his discussion with John O’Donnell and Merlin Rothfeld about the fall of the Euro. This would also lead to the rise of the German Mark which Mr. Barron feels would become the world reserve currency. This is because of its lack of debt and industry. Tune in to find out how this will impact global markets and trading opportunities.



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Consumer sentiment in the U.S. improved by more than previously estimated in the month of October, according to a report released by Thomson Reuters and the University of Michigan on Friday. The report said the final reading on the consumer sentiment index for October came in at 86.9 compared to the mid-month reading of 86.4.

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John interviews Dr. Richard Ebeling , Professor of Austrian Economics at Citadel University and a leading economist in the Austrian tradition. They discuss the journey Richard led to discover the Ludwig von Mises personal papers and archive in 1991. Mises' papers were originally stolen by Hitler in the first world war.



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Australia's retail sales increased at a faster than expected rate in September, a report from the Australian Bureau of Statistics showed Tuesday.

Retail sales grew 1.2 percent month-over-month in September following the 0.1 percent rise in August. This was more than the 0.3 percent increase expected by economists.

Among the sub-groups, household goods retailing rose the most, by 4.1 percent. Sales in cafes, restaurants and take away food services advanced 2 percent.

Sales in department stores increased 1.3 percent. Food sales and clothing, footwear and personal accessory sales grew 0.4 percent each.

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Fresh out of teaching an Options class in Irvine CA, Mr. Greenberg joins Merlin for a look at why most people lose money trading options, and the simple things they can do to stop losing! Joel talks about how he trades options using some XLT indicators and a rule based approach. This simple methodology lacks glitz, but gets consistent returns!



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Tillie Allison joins Merlin for a look at the Bond market situation and what we should be looking out for. Many feel bonds are the way to go, and that may not be the case. Tillie also offers some insights into market timing and how allocation models play a role on achieving a higher rate of return. All callers during the show will also receive a free copy of Tillie Allison’s DVD “How To Retire With More Money Than You Need”



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While teaching a class in Vancouver Canada, John O’Donnell calls in to talk to Merlin about the recent unemployment and jobs data. While things look rosy, John points out some red flags which paint a different picture. The duo also look at commodities and Gold for some trend analysis.



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Russia's central bank on Monday allowed the ruble to float freely, after it fell heavily in recent weeks, and cut the country's economic growth forecasts on the premise that the Western sanctions would remain until the end of 2017. The Bank of Russia announced in a statement that it was abandoning the ruble's trading corridor and regular foreign currency market interventions.

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