The FOMC June 2006 meeting starts on June 28 and the FED decision will be announced on June 29 at 14:15 EST time. The consensus in for a 25 points increase to 5.25 %. The decision seems almost a done deal, but what are the things that the FED is watching for, and what happens on June 29 and beyond? I did a little research on this subject, you can find the whole story here: FOMC June 2006 meeting

Here are some of the more important points that I make:

1. On the last meeting the FED said the decision will depend on incoming data, and the data came out strongly in favor of a rate increase.

2. Reason for concern...Higher Interest Rates Hurts the Global Markets Over 2 Trillion. The world markets don't like the tone of the central banks.

3. More rate hikes to come: The list of prominent names that expect the FED to go near 6 % include : Barclays with 6 % by year end, Lehman Brothers with a forecast of 5.75 per cent, JPMorgan and Credit Suisse, with a 6 per cent peak but both expect that rate some time next year.

What your opinion on this subject?

Is a 25 points rate hike in June a done deal, and what will the FED do after that?

Yes its very much a done deal.
But look and be careful of compensatory corrections in lieu of this decision.
Some corporations will exchange Billions in funds before the decision - which may create a quasi-adverse effect.

i think june rate .25 % is already priced in forex market and market will, as always, listen to the tone of the statement

I don't know what the Fed will do... but I know what I will do as a trader... put my trades on based on my news trading system. I can't control what others do or really make accurate forecasts, but I sure can react when the market moves.

Its gonna be interesting indeed

market expect a 0,25 hike also rummor of a 0.5 hike but i most say that the danish housing market expect Rates to hike(ECB) and bunds as in this writting making fresh lows so the suprise could be FED on hold who know lets se thursday.

sailor

I agree with you. The tone of the statement will give future clues. If they give us the DECISION WILL DEPEND ON DATA statement again, we could see traders jumping on every major news report like they did in the last month.

Mister Chop has been collecting a lot of lately. Then again it may be just me.

Is that NWRK 's news trading system, or your system? Do share.

Attention! The FED decision is just a few hours away at 14:15 EST. To see what the decision may be, you can see the analysis here: FOMC June 2006 Meeting

Goes up or down..who cares, this forum has 100's of indicators to follow the trend...I will more look into technical analysis than follow the fundamental lies of washington. Over the time the more i followed the NEWS the more worthless the information becomes for trading.

Its just a minor distraction, If we 100 percent fully concentrate on trading the price trend...thats all is needed to go with the wave..ofcourse it's hard.... im right now looking at the commentary of any possible moves with interest rate hike....just can;t give up my old habits ....im beggining to learn how hard it is to become a currency trader.

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