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Financial In Market By Freddie Mooche

Forecasting measured rate increases, the Fed has raised the fed fund rate six consecutive times to 2.5 percent so far with investors expecting it to continue nudging the fed fund rate another quarter point when the Fed's policy panel meets this week.

Oriental Trading (AXcess News) Washington - The Federal Reserve said it raised the Fed fund rate charged banks for overnight loans a quarter point Tuesday, bringing the Central Bank's rate to 4 percent, marking the 12th consecutive rate hike and highest level in four years.

Although the BoJ raised rate by 0.25%, the post meeting policy did not give any hint for further rate hikes which supported the carry trade activities.

Financial Forex Forex Software The U.S. Central Bank said that it still had room to tighten rates in the face of booming production by factories and strong retail spending in October.

Meanwhile, Interest Rate futures show traders expect a 0.25% point rate cuts at the Fed's next two monetary policy meetings on October 31 and December 11.

Trading Offsetting factory orders and strong retail figures were slumping automotive sales due mostly to high fuel costs. AXcess News had pointed out last month in its news coverage of the Commerce Department's economic figures that automotive results were most likely on the decline. It was covered in greater detail in an earlier report on the unemployment picture.

rate futures show around a 90% chance that the Fed will lower its 4.75% overnight lending rate between banks by at least a 0.25% point on Wednesday.

Trading Financial System The combined results are giving mixed signals to the Federal Reserve's monitary policy committee, which approved the interest rate hike set earlier today by the U.S. Central bank.

The housing market contraction appeared likely to become even more severe and it seems as if the Feds is in a tight corner. The FOMC cut the benchmark lending rate by 0.75 percentage point to 4.5% in the last two meetings over the past 8 weeks. This is the most aggressive cut since the economy was emerging from its last recession in 2001. Federal funds futures contracts show the Fed is almost certain to lower the rate by another quarter point to 4.25% next month.

Day Trading While growth is strong, inflation is making the Committee nervous. But that tension is partially due to higher energy prices.

Forex Financial Trading The Economists are also watching the Group of 20 meeting in Hong Kong that's coming up, hoping that EU trade tariffs can be lowered sufficiently to satisfy those global trading partners. The US wants trade talks to come to a satisfactory conclusion before its agreement expires in 2006. Foreign trade partners in India, China and Brazil want the EU Commission to give in on agricultural tariffs before the Group's planned meeting in Hong Kong. Those member countries halted prior talks until the agricultural issues could be dealt with safifactorily.

Fortune Make Option Trading The 10-year treasury bond, a bell weather of the monetary market, closed up 0.02 points to yield 4.577% Tuesday.

Science Of Financial Market The Dow Jones Industrial Average closed down 33.30 points, or 0.32% to finish the trading session at 10,406.77. The Nasdaq fell 6.25 points, or 0.29% to close at 2,114.05, while the S&P 500 closed at 1,202.76, off 4.25 points, or 0.35%.

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