What Does the Economic Reaction to the End of QE1 Mean for the End of QE2?

NEW YORK, July 13, 2011 /PRNewswire/ --

Two key economic questions face Forex traders right now. Firstly, how weak is the American economy? And secondly, how will it be affected by the end of the Federal Reserve's Treasury $600 billion bond buying program?

Joseph Trevisani, Chief Market Analyst of online foreign exchange broker FX Solutions (http://www.fxsolutions.com/), assesses the situation: "While economic activity is difficult to predict, we do have a standard for comparison. QE1 ended in April 2010. We can look at how several indicators fared from April until that August 27th when the Fed announced its surprise QE2 policy. It is not a comfortable comparison."

"The record of the ISM indices will provide the view of established businesses and the National Association of Independent Business Index (NFIB) the same for small and newly formed organizations," continues Mr Trevisani.

"The New York, Philadelphia and Chicago Fed indices chart anecdotal information for their areas. Industrial production, capacity utilization and GDP look at the overall economy and the four week moving average of initial jobless claims and Non-Farm Payrolls (NFP) will observe the labor market. In addition I will chart the performance of the Dow and S&P averages over last summer."

Forex traders also wishing to analyze forthcoming developments can learn more about FX Solutions' comprehensive charting offering at http://www.fxsolutions.com/learning-tools/charting.asp

Find out more about FX Solutions at http://www.fxsolutions.com/

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