The market is indecisive. It may be due to the lack of progress that was made in the IMF (International Monetary Fund) meeting last week. There was no exact decision regarding the "currency wars", the dollar and other currencies are facing, in relation to China's deflated currency. The US is pressuring China to allow its currency to rise in value. By intentionally keeping their currency low, China has somewhat of an advantage not only for exporting but also for enticing local businesses to outsource because of the attractive lower costs its currency can provide to manufacturing businesses.
Another reason the market has remained rather calm may be due to the anticipated relief the Fed is expected to provide to help boost the US economy. The FOMC notes should be released in the next day which will help give direction as to what the Fed will do.
No comments:
Post a Comment