Thursday, April 19, 2007
Will the forex dealers look at the fed budget figure today besides unemployment rate? -
what does the fed buget signify? does it have a big impact on the exchange rate? The federal budget deficit is a measure of how much money we have to borrow, by issuing treasury bonds and notes, from other people or governments to pay our bills. It does have relate to the long-term value of the dollar, but short-term fluctuations are more governed by the supply and demand for dollars and other currencies, and is a function of trade balances.
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