Hi Friends!
This is your Hard Money Lender in Tucson and the Southern Arizona area, Billy A, I found a great article published today By Deborah Levine and William L. Watts from the Wall Street Journal’s Market Watch section I thought was worth sharing:
Dollar Reverses All Losses Since Last Fed Meeting
SAN FRANCISCO (MarketWatch) — The dollar index pushed above the 80 mark for the first time in a month on Wednesday, defying expectations that the U.S. Federal Reserve’s latest round of quantitative easing would drive the greenback lower. Investors’ need for shelter from the Europe debt crisis has outweighed the Fed’s effect on the currency.
“There is now a great deal of uncertainty about the trajectory of the global economy in the wake of the significant deceleration we experienced earlier this year,” said Andrew Cox, a currency strategist at Citi. “In the absence of a compelling growth story outside of the U.S., the dollar is not as unattractive as it was two years ago” when the Fed launched its last bond-purchase program.
The ICE dollar index DXY +o.o6%, which measures the greenback against a basket of six major currencies, climbed as high as 80.186.
It lately traded at 80.058, compared with 79.973 in late North American trade Tuesday.
The dollar index last stood higher than the 80 mark exactly one month ago — just before the Fed launched its open-ended bond-purchase program.
“Defiantly ignoring the negative prognostications of the vast majority of currency strategists and commentators, the dollar has recorded a modest appreciation of 1.5% since the Fed announced unbounded QE four weeks ago,” said Michael Derks, chief strategist at FxPro in London.
Quantitative easing is an almost-pejorative term to central bankers, and is used when policy makers take steps that are seen as akin to printing money, such as buying up assets to push more cash into the financial system. Having more of any currency floating around would, in theory, make its value decline.
To read the rest of the article click here.
In the meantime we’ll keep you apprised on how this will affect the Arizona market. In the meantime, don’t forget about our Free Lunch-N-Learn Seminar on Asset Protection next Tuesday, October 16th at Stewart Title. Click link below for more information.
For more information on the Free Lunch-N-Learn Seminar click the photo below:
That’s it for now! Make it another great day!
Your Hard Money Lender in Tucson and Southern Arizona,
Billy A
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(520) 299-4878!
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