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Fed lowers 2009 outlook.

Thu, Feb 19 2009, 00:57 GMT
by James Whyte

ForexAmericas


In the news: Today U.S. stock markets ended the day basically flat as President Obama discussed his $75 billion relieve to homeowners. During a press release today the President spoke about the details of the economic stimulus package focusing on the housing foreclosure crisis. Also today the Federal Reserve in a press release lowered its GDP outlook for this year and forecasted unemployment to continue increasing. The Fed predicted the U.S. economy should begin picking up in 2010 and 2011. See Fed Minutes.

In focus today:

Eur/Usd: Today the Euro traded to a two-month low versus the Dollar on concerns the European bank’s exposure in Eastern Europe is worsening. The softness in global stock markets and the fears on slowing global growth spurred a safe-haven demand for the dollar today. At midday New York trading, the Euro was trading at 1.2599 versus the Dollar. Currently trading at 1.2555 (6:49 pm est.) the Eur/Usd is finding support at 1.2510/20 level, the low of today. A breakthrough of this level could take the Eur/Usd to 1.2420/30, low of November 20, 2008. Looking ahead of tomorrow’s data, we will keep an eye on Producer Price Index (PPI) due out at 8:30am est. for a .2% forecast, anything below this should take the dollar lower.

eur


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