Week in Review: U.S. Launches Another Stimulus Plan

Week in Review: U.S. Launches Another Stimulus Plan
September 13, 2012 Market Traders Institute

Today, the U.S. Federal Reserve enacted yet another round of economic stimulus for the weak U.S. economy. The new plan is valued at $40 billion and statements released today show that the Federal Reserve will work on the economy until employment conditions improve.

 

This move came shortly after Moody’s Investment Services warned that it may lower its U.S. credit rating if action was not taken to avoid the looming fiscal cliff (the idea that, without action, the U.S. economy will recess once again in early 2013).

 

In the chart below, Forex Analyst Shawn Beecher saw a more than 140 pip movement in the EUR/USD pair within 3 hours shortly after this announcement was made.

 

U.S. Gets Another Stimulus Plan

 

What’s next for the U.S. dollar?
Many times, stimulus plans lead to inflation in that country’s currency. With the possibility of inflation occurring in the USD, interest rate hikes may follow which means you need to get involved now in order to capitalize later.

 

You just need to have a plan. The Ultimate Traders Package on Demand could prepare you to take on the Forex market. To learn more, attend a complimentary webinar by completing the form below.

 

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