Analysts say they expect no hike in interest rates this week, with strong economic growth at home countering global market viability. Trading took place amid the release of key economic data from the US, which were seen as increasing he likelihood of a rate cut when the Federal Reserve next meets on September 18. Tuesday morning, the Institute for Supply Management released its report on economic activity in the manufacturing sector in the month of August, showing that the pace of growth in the sector slowed compared to the previous month. The Department of Commerce released its report on construction spending in the month of July on Tuesday, showing that spending fell much more than expected compared to an upwardly revised reading for the previous month. Tuesday morning’s reports were important to the Federal Reserve’s interest rate decisions, as the Fed has stated several times that economic growth is an important factor in deciding whether or not it will cut interest rates. The dollar was slightly stronger against the sterling Tuesday, but saw a notable early advance pared in mid-morning action amid renewed interest in higher-yielding currencies. read more
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