U.S. Monetary Authorities Remained Silent During Second Quarter
The latest forex news, the Federal Reserve Bank of New York announced on August 11, 2011 that the U.S. monetary authorities did not intervene in the foreign exchange markets during the April through June quarter. This week has seen major swings in stocks, following a major drop on Monday, a severe rise on Tuesday and sharp drops on Wednesday. The New York Times and other outlets are reporting that the stocks and forex exchange rates have not been this volatile in years.
In its quarterly report to the U.S. Congress, the Federal Reserve Bank of New York announced that the dollar depreciated 2.4 percent against the euro and 3.2 percent against the Japanese yen. Also during the three months that ended June 30, the dollar’s trade-weighted exchange value depreciated 2.0 percent as measured by the Federal Reserve Board’s major currencies index.
The New York Times had this to about the foreign exchange markets. “The financial markets this week have been held hostage to worries about the global economy, Europe’s troubles and the implications of a ratings agency’s unprecedented downgrade of the United States’ credit rating.” The good news is that the main structure is there, which means you can continue trading, whether via forex robots or traditional trades.
