Archive for June, 2010
BOC Disappoints the Market Investors After Today’s Meet
GDP growth rate rises up to six percent that is beyond the expectations of annualized rate. As we have noticed that it grows up to 0.6 percent in the month of March as compared to the Feb. growth rate that is of only 0.3 percent.
It was anticipated in the market that the Canadian Dollar is expected to rise up until the meet of BOC members that will be held today. The market is expecting that the BOC will be the first G7 Central bank that begin the tightening in the market.
Today after the meet the BOC has declared that it will not change the interest rate prices from 4.5 percent in June. This mainly impacts on the prices of Australian dollar as it falls after this announcement.
Risk sentiments gets weigh after the dis-satisfying PMI data comes from China and it also embedded risks in the market situation. There was a drop down shown in the Asian market that are generally lower than Nikkei at some point.
RBA specified the main cause of the policies recently made by European countries to stabilise the Forex market situation along with providing the bond market, liquidity in the market, cut budget deficits and so on.
Asian investors get dis-appointed after the release of manufacturing data of China. since in may month there was a drop down shown in the market of 53.9 that was more than expected by the market.
Since the market is hoping for some good decision today from the BOC’s end but the hopes faded as the euro zone debt crisis escalated and there was a certainty of only 50 percent rate hike that came into existence.
Therefore now the market is looking for the nest meeting that should be held on coming Monday for the further action that world be carried out for the Global economic development.
