Euro Rises to 4-month High Ahead of Fed Meeting

September 12, 2012 By 4 Comments

The USDX has broken below 80 and set a 4 month low today.  Look for massive volatility in forex as well as the metals as the German Constitutional Court is set to rule on the legality of the ESM in a few hours, followed by Thursday’s FOMC statement.
Gold and silver are up during Wednesday Asian trading as the algos remain in place prior to the German announcement.

 

(AP:NEW YORK) The euro rose to four-month high against the dollar Tuesday as traders wait to see if the Federal Reserve will announce additional steps to help the U.S. economy later this week.

Optimism that a top German court will rule favorably on Europe’s bailout fund also helped pushed the euro higher.

Fed Chairman Ben Bernanke said in a speech last month that the bank can do more to help the U.S. economy rebound. It has already launched two rounds of bond purchases, most recently in August 2010. The Fed ends a two-day meeting Thursday.

On Wednesday, Germany’s highest court will decided whether it will decide whether or not it will allow Germany to join the European Stability Mechanism. The ESM is a new $639 billion bailout fund for the 17 countries that use the euro currency.

The euro rose to $1.2860 in late trading Tuesday from $1.2769 late Monday. The euro rose as high as $1.2870 Tuesday, its highest point against the dollar since May 14.

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Comments

  1. Avatar of StackerX StackerX says:
    September 12, 2012 at 7:29 AM

    By Fridays market close Silver in my opinion would have just broken past $36 or just under $36. By months end I think we could be at about $40 spot. Contingent upon new QE program announcement tomorrow. 

  2. Avatar of allinagau allinagau says:
    September 12, 2012 at 8:14 PM

    There is just so much bad news and evil handling of the market going on that something has to fly off.  If the MSM ever did do there job that would wake a few people up.  Instead we search for truth and everybody else is just fed bull at this point.  The truth will eventually get out to the masses.

  3. Avatar of Sumkid Sumkid says:
    September 12, 2012 at 9:55 PM

    If Ben Bernanke said that the bank can do more to help the US economy, then why did Andrew Jackson went against a central bank? I think that the US economy should go back just like it was before by limiting the dollar supply instead of creating more of it. 

  4. Avatar of MaryB MaryB says:
    September 12, 2012 at 11:35 PM

    Buy more bonds with money created from nothing, nice racket until it crashes and backfires. Sooner or later this is going to trigger hyperinflation(we already have pretty bad inflation going just by food prices and gas prices).

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