The week ended with all eyes on Spain as the Banking stress tests were released with better than expected figures. Europe stole the spotlight this week with protests and lower economic figures which deflated the currency versus the U.S. dollar.
In the United States the bigger stories had some Fed members playing down the potential effect of QE3 as defenders rose to justify the decision by the central bank and potential to increase the bond-buying program. The amount is considerable enough (40 billion a month) to show of the commitment of the Fed to boosting the economy. Some analysts think it won’t make a significant difference and could be a time extension from the Federal Reserve to see how the European crisis evolves. The decision could be made then to expand the program if needed.
The US election will continue to grow as we are near the first debate which will pit both candidates against each other. At the moment Obama leads in the polls, but with plenty of time before the elections and starting with the NFP next Friday a lot of economic data which could help or hurt the incumbent’s chances of reelection.
- QE 3.5 to come in December? | OANDA Forex Blog
- Fed Plosser Deflates QE3 | OANDA Forex Blog
- US Consumer Confidence Up Americans More Optimistic | OANDA Forex Blog
- Fedâ€™s Williams: QE3 asset buying may be expanded | OANDA Forex Blog
- Canadian Dollar Could Benefit from Middle East Unrest | OANDA Forex Blog
- Historical OANDA Forex Open Orders | OANDA Forex Blog
- CAD Loses Momentum as Gold Falls | OANDA Forex Blog
- Canada GDP Expands 0.2 Percent but Outlook Uncertain | OANDA Forex Blog