"Hooray!" - Shouted the markets as a respond to the new incentives ...
U.S. Federal Reserve announced yesterday the new incentives to support the national economy. Feature of the new phase of quantitative easing is an unlimited redemption of mortgage securities in the amount of 40 billion dollars per month, and the program "twist-2" will continue until the end of this year. Bernanke showed concerns about the problems of high level of unemployment, and this is one of the main reasons for the Fed to start QE 3.
"The situation with unemployment ... continues to cause serious concern - Bernanke said at a press conference after the Fed meeting. - While the economy is on track for moderate recovery, it is not growing fast enough to significantly reduce unemployment" . (Reuters)
What incentives will bring to the market? We can definately say that the commodity and commodity assets will win in this situation. Against this background, will receive good support. With regard to the single currency, its growth is likely to be be limited, since they themselves volumes QE 3 stretched out over time and is not as extensive as it was in the past. The ECB will also be "empty" of liquidity in financial markets, which, of course, is not allowed to continue runaway euro on the foreign exchange market.
In the meantime, local dollar will weaken on all fronts.
Events today:
Moscow time
16.30 Canada Industrial sales in July n / a; 0,5% m / m, -0.4% m / m
16.30 U.S. core consumer price index in August n / a; 0,2% m / m and 0.1% m / m
Basic 16.30 U.S. retail sales in August n / a; 0,6% m / m and 0.8% m / m
16.30 U.S. retail sales in August n / a; 0,7% m / m and 0.8% m / m
16:30 U.S. consumer price index in August n / a; 0,5% m / m and 0.0% m / m
17.15 U.S. capacity utilization in August n / a; 79,4%; 79,3%
17.15 U.S. industrial production in August n / a; 0,2% m / m and 0.6% m / m
17.55 U.S. Preliminary data on the index of consumer sentiment from the University of Michigan in September n / a; 74,1; 74,3
17.55 U.S. Preliminary data on inflation expectations from the University of Michigan in September n / a; n / a; 3,6%
18.00 U.S. business inventories in July n / a; 0,3% m / m and 0.1% m / m
