QE2 will be more likely to decline than QE1

What made the decision of the Fed, so it gave Forex a road map. Although nothing can not be sure, the language chosen by the Fed in a statement last night, means that the markets are ready for further quantitative easing until the end of the Fed, and it is very likely that this will happen during the next meeting in early November. The movement of five basis points, one-year securities to 0.41% of the U.S., reflect this reassessment.



Besides smoothing out the curve on the main eurodollar, which was a key driver in the pair dollar / yen this year, and has placed additional pressure on the Japanese currency. Another landmark on the road map is a further intervention on the yen, which is practically inevitable. High-yielding currencies are set for further growth, an Australian, in particular, gives hope for higher interest rates in the country. Nevertheless, QE2 will not be a repetition of the first attempt in 2009. In those days, was sold a lot of assets. There is no such, and despite the road map, this time on the road can happen to a lot of losses and failures.

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