Press Release Summary: The slowdown in the US economy captivated its surrounding economies with it, compelling an alteration in the monetary policies of the central banks.
Press Release Body: The slowdown in the US economy captivated its surrounding economies with it, compelling an alteration in the monetary policies of the central banks. In contrast, US dollar emerged with what was expected, it had began to reveal the signs of inflation which can prevent the Federal Reserve from carrying major steps for preventing the turmoil. Volatility is expected to be stagnant according to the www.forexwebtrader.com report; recently the investors have a focus on the upcoming housing data and the final outcome from the two significant banks report Federal Reserve and the European central bank.
However with the increasing concerns for the emerging conditions in the world's biggest economy there is growing possibility for the recession or downfall in the US, as its being one of the biggest consumers of energy in the world may sharply decline its demand on account of forthcoming situations of depression, and its decline being considered as certain, however can be of short term, on account of economic slow down that can affect the economic sentiment on a large scale.
If everyone reduces its expenditure it will take the prices further down as a result of these activities there will decline in demand the basic reason because of which US stocks fell severely, followed by the decline in oil prices, the oil prices went below 90 $ on Friday in the Asian trading. On the other hand, yesterday's CPI (consumer price index) report reveals that however the December's CPI data remained high at 4.1%, although it was down from 4.3% in November there still persist the conditions of unemployment and economic slowdown in the US. Analysts are forecasting that this prolonged slump and financial credit crisis may expose the world's largest economy into the state of recession. To the other side, Gold also tumbled down to a low of 875$ per ounce from a record high of 914.50$ during earlier trading. As the dollar pulls back a bit from the prevailing downtrend, the investors are on the way to take opportunity of cash-in on. For those who are in search for the answer to the federal reserves attitude towards the weakening economy whether it will cut interest rates up to 50bp at the end of the month might have experienced an idea for the answer today from the recent CPI data which reveal that there is still unemployment and the economic weakness in the US which has prompted the fed to go for more close perception towards the economic growth instead of inflation
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