1st on Forex: For Your Trading Success by 
By Jerry Furst - Sr Analyst
ECB: Rates on Hold for Now
Jean Claude-Trichet has decided to hold rates steady. During his press conference Trichet is being quoted as saying that, “Upside inflation risks have diminished somewhat.” His rationale is that the high inflation coming through the pipes is from past oil and food price hikes, and he anticipates these costs coming down.
This as the European Central Bank head faces the hard realities of the Euro-zone sinking into recession. However, The phone lines are probably quite active between manu of the central bankers and it may be only a matter of time before rates start coming down from many central banks.
Bernanke Surprise Coming?
The odds of a surprise move by the FOMC and Ben Bernanke could potentially come at any time (as always) with an unscheduled rate cut. The questions here if that happens are: how much of a cut, if it will be coordinated with other central banks, or if it causes a domino effect of some kind. Currency traders do not want to be caught by a surprise like this - tight stops may not work.
Euro Makes New Lows as Dollar Holds Up
The Euro made fresh yearly lows of 1.3854 before rebounding back to the 1.3900 handle after the rate decision. The Greenback is showing superb strength in the face of the potential for a lot of printing. However US Jobless claims came out higher as Non Farm Payroll is due up tomorrow.
Stabilization-Rescue-Bailout Drama Continues
In the evening of October 1, The US Senate passed a “Stabilization” bill that is being passed over to the House. The questions are will the bill pass, and will it work as intended to stave off more serious issues pending. It’s amazing to watch the political gears turn so fast - with so many citizens finally waking up - after so many players being asleep at the wheel for so long.
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Jerry Furst is an active trader, educator, and Founder of Investors Education Network (IEN), He is a Mentor and Trading Coach to Select Clients Click Here for a Free Self Evaluation Survey.
We have a proverb: If U R afraid of the wolf don’t go to the forest.