Fed makes small changes to control policy rate, hints at more to come
But it signaled that before long the Fed may take the bigger step of slowly bulking up its balance sheet to try to keep the problem from cropping up again.
Turmoil this week in funding markets briefly pushed overnight bank-to-bank lending rates above the U.S. central bank’s target range and forced the New York Fed to step in with its first emergency injections of liquidity since the financial crisis. THE AFTER EFFECT – READ MORE
WHAT ABOUT THE PESO?
The PHP Peso remain at 52 after it jump @ 52.50 earlier; but remains to be seen as US Federal Reserve plans to reduce rate if need be and keep monetary policies loose.
- PESO SHOULD get stronger the USD moving forward as more and more countries shun away from strong dollar
- US is Import and Export based and Strong Dollar won’t do good for them
- We expect a strong pullback of the USD against the Peso in the comings months
PSEI SHOULD REACT THIS MORNING
Philippine Stock Exchange is wel position for a new high in the couple of months as FED opens the tab for easy money. We believe PSEi Index will cross the 8000 – 8500 in the coming months.
- Volume is increasing and buyers are coming in.
- Price is still above MA200
- Technical Chart Patterns shows that PSEi heading upwards unless it breaks the MA200
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