The U.S. central bank began tightening cycle of monetary policy. This happened quite a surprise, since no signals were given prior to such intentions. Policy on withdrawal of money from the system began with an increase in the discount rate that commercial banks pay the Fed on its direct loans from the central bank. He was raised by a quarter percentage point to 0,75 percent. Among the reasons the central bank is that commercial banks must rely more heavily on money markets to raise the necessary funds, rather than resorting to the services of the Fed. These changes are considered as a step toward normalization of credit facilities the Fed,” says the official release of the institution. “No change is expected to lead to further tightening in financial conditions for households and businesses and they are not intended to signal a change in the outlook for the economy or monetary policy,” the Fed explained. After news of the dollar shot up sharply since the central bank’s actions are perceived by the market as a signal that is to tighten monetary policy. The dollar jumped to a level of 1,3485 EUR / USD, as at an earlier stage had reached a level of 1,3444 EUR / USD.
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The quotes of the Asian oil trade fell below $ 75 a barrel, reaching almost to the monthly minimum, and the main reason, according to Reuters agency have poor economic data in Asia and especially the increasing demand for currency to replenish the reserve of some large banks China. Additional indicator for the lowering of prices was news that the economic growth of South Korea has slowed down during the last quarter of 2009 due to three factors: reduced export demand and crouching low public spending. All this led to a decrease by 85 cents a quotation of U.S. light sweet crude for March delivery at $ 74.42 a barrel. When Brent was also reported a decline of 80 cents to $ 72.89 a barrel on supply in March. Players expect the oil market statistics for stocks in the United States to take their decision how to proceed until the end of the week. This information will be made tomorrow on two channels – from the American Petroleum Institute (API) and Energy Information Agency (EIA).
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