Fed Rate Statement: How Markets Will React to US GDP?

Dollar-retreats-as-the-Fed-slashes-2015-growth-forecasts-fxcommentWith the raising prices of commodities and the poor performance of stocks at Wall Street, there are concerns of a slowdown that China might be facing in the times to come. The market is moving real slow and the turn of events are not promising, as headlined by the Federal Reserve and the GDP data by the US. Last week, the operations at Wall Street were closed with a red end and the industry average is indicated to be a part negative.

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How Is It Going To Affect The Market?

The stronger value of the US dollar keeps on dominating the foreign markets and blue chips stocks indicated it will hurt international sales. If you are going to take the six global competitors into perspective, then the weighted average index of the dollar eased off at a three month high, closing in at 97.24. However, if you are going to take the gaining percentage into consideration, then the dollar was up by an astonishing 21 percent from July 2014.

Effect on Traders

All traders who are specifically trading binary options are going to keep a close eye on the Federal Reserve Policy, where it could indicate an increase in interest rates that may be beneficial to traders in the long run. In the statement that was issued, it was indicated that interest rates in the GDP of June were in high levels and this put a direct doubt at the banks, where they were protecting the information that was confidential. The Commerce Department also issued the estimate of the GDP growth and according to the recent poll that was conducted by Bloomberg, the US economy is forecasted to grow in the region of 2.9 percent in the second quarter where it contracted by 0.2 percent on the first three months.*

News in the Reports

federal-reserve-gdp

Traders who are also interested in other moving markets in the US can refer the news that was out by the Commerce Department that gave reviews on the durable goods and the manufacturing business index that was released by the Federal Reserve Bank of Richmond. The National Association of Realtors also indicated a report stating the news on sales of pending homes. The Fed Bank of Chicago offered the news of the PMI indicator that had its review on the second quarter of GDP figures. According to the German consumer confidence survey, the inflation data regarding the month of July will give the reviews on the Eurozone inflation figures that is going to help The European Commission to have a close track on the figures.

The other traders in the market can keep a close track on commodity markets news as this week indicates some good recovery signs of global growth. Binary Options traders should keep these figures in the mind while trading.

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