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Rumors going around that Fed to hike discount rate; Dollar soars
By Jamie Coleman || March 18, 2010 at 15:36 GMT
|| 11 comments || Add comment
Sounds dodgy, but the rumor is working its way through the market.
The discount is a penalty rate, now at 0.75%, above the market rate for Fed funds which is between 0.0 and 0.25%. It is for banks that are shut-out of the Fed funds market due to credit concerns. In normal times, it is little used. The Fed may be trying to make it even less used than it is at the moment.
hmm that’s explain
my trader platform says this proposed hike is supposed to happen at 12.30 today? what are your thoughts on this jamie?
My guess is that it is nonsense..
If it’s nonsense, we rebound? Or was this dip in e/u & cable purely technical?
ah i second that thought…but i aint gettin in the way of this big red bus
well this rumour definately did run alot of stops….if we bounce could be an indication of a flase break lower….so we go higher?
who knows with forex….sometimes i think i’m better of flipping a coin..
we’re in a 1.343-1.38 range and have closed the last six weeks around 1.362. It’s a good buy around 1.345 or 1.354 and a good sell around 1.38. i wouldn’t put too much stock in the the stories that the press is running with at any given moment, just watch the price action. imo, until we break above or below the range the best play is a mean-reversion play from the edges. as sean says, don’t get chopped up in the middle…
This rumor already pissing off some pople http://www.youtube.com/watch?v=l3KIxzCqYqM
[...] Box WordPress PluginGo greenback go! The dollar is spiking like crazy right now, and according to ForexLive, the rumor among currency traders is another Fed hike to the discount [...]
Zak, that was me throwing clips at Gerry back at Thomson…
Really!!! I didn’t know it is tough to work with Gerry. Man, he has some fast moves!!!