Like the
normal for Monday the trading on the market is mixed. The traders expect new
evidences for the situation in the US economy. Still the signals are not clear
what will do the Fed with the interest rates during 2007. The half of the year
is over as the speculations for Fed rate cut started at the end of 2006. The
worst scenarios forecasted Fed rate cut with 0.5% to the mid of 2007. The most
optimistic forecast ups with 0.25%. For the moment the most realistic scenario
for 2007 is the Fed to cut with 25 bps to 5.00% or to keep the interest rates
unchanged. The decision will come by two main factors. The first is the US
housing sector reports and the second US inflation. The first factor is present
this week with Existing home sales and New home sales.
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