Few days before the last U.S. central bank (Fed) monetary policy meeting on December 17 and 18, trader’s attention will focus mainly on the Fed report on employment and unemployment in the United States this Friday. The employment report will also be studied in order to obtain clues about possible Fed’s ultra accommodate policy decisions.
Good results could push the Federal Reserve to stop its monetary stimulus of massive injections of liquidity into the financial system of the United States ($ 85 billion per month) which inflate the American growth.
The economic indicator of unemployment change in the United States in November had reassured traders; the retail sales for the beginning of the holiday period are spectacular, the economic recovery appears to be running.
The economic health of the country surely pushes the Fed to gradually reduce these economic measures at the beginning of 2014. Investors will again see the dollar as lucrative and attractive!