Daily Remarkable news - December 18, 2013 (sources: collection)

MARKET awaiting the results of Fed meeting

Today the Federal Reserve monetary policy announcement after meeting his 2-day . This meeting of the Fed awaited by issue of concern is whether this market has cut the Fed quantitative easing program after the recent statistics show that the strong recovery of the U.S. economy especially the labor market . One of the top concerns of the Fed is to limit the volatility of the market because of its policy decisions . Therefore, the president press conference held immediately after Bernanke Fed policy statement is also seen as very important by Bernanke explains Fed's decisions as well as provide policy direction in the future this agency .

Market watchers are predicting for the scenario will happen when the Fed ended the meeting. Perspective is the most market expectations that the Fed will maintain scale asset purchase program at $ 85 billion per month but clearly notice that the cuts will begin in early 2014 , will mean take place in January or March next year . Although the U.S. economy showing strong recovery in recent times , the more likely the Fed policymakers will wait for the next data to confirm that the current recovery is not sustainable temporarily . Besides, the current inflationary pressure is not big in November when U.S. inflation was only 1.2 % , much lower than the Fed's target of 2% . If this scenario happens , the dollar will likely decline slightly .

Another scenario is more likely to happen is that the Fed will undertake QE3 cuts , however only limited reductions in levels 5-10 billion and said the Fed's actions in the future depends into the next evolution of the U.S. economy . Average employment growth across U.S. 4 months exceeded 200,000 and the unemployment rate fell to 7 % allowing downsizing Bernanke stimulus simultaneously to open the possibility to increase or decrease the size of this program in the next term of the new president Yellen . If this scenario occurs , the market is likely to witness the rise of the dollar gains however the greenback's value will not be strong .

Financial markets can be volatile if the Fed's decision making investors by surprise. If the Fed does not cut as well as conduct not provide policy direction in the coming time, the dollar will decline sharply . In this case a sharp cut stimulus program to scale up to 15-20 billion dollars , the rise of strong greenback is unavoidable .

GOLD PRICE DEPENDING ON THE FED

Gold prices continued tension in the session yesterday as investors cautiously result of Fed policy meeting published today . The forecasts of analysts still leaning ability Fed will not cut the size of the quantitative easing program at this meeting . However, gold prices could reduce pressure if Fed cuts stimulus plan at the beginning of next year . In case the Fed announced downsizing of the stimulus package , the price of gold will face the risk of falling . Besides, a number of suggestions that gold prices will not fluctuate sharply once the decision was made ​​that the Fed did not surprise the market .