Corporate foreign exchange news

US quantitative easing to impact forex dealers?

Wednesday, 14 December 2011 09:15:18 GMT

Published by Jamie Jemmeson
Forex dealers may be impacted by a greater level of confidence in the US, although the continued debt crisis in Europe may restrict the gains the country makes.
Portfolio manager at Eaton Vance Corp in Boston Tom Luster told Bloomberg that there is a 50 per cent chance that there will be a new round of quantitative easing before July next year.
"It would seem to me that at a minimum you have a pretty significant recession in Europe, which is likely to affect us directly," he said.
Mr Luster noted that this may be prompted by a new selection of policymakers joining the Federal Open Market Committee (FOMC) next month, as well as the fact that members who have previously opposed such a move - including Minneapolis Fed's Narayana Kocherlakota, Dallas Fed President Richard Fisher and Philadelphia Fed president Charles Plosser - will be without a vote.
In a statement released yesterday (December 13th) the FOMC suggested growth is likely to continue to grow at a "moderate" rate in the coming months.
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