Financial Impact Of Microeconomics - 1276 Words

On September 20th of 2017, the EUR/USD took a steep fall and fell over 100 pips, meaning that the US Dollar has strengthened. The biggest factor in driving this large move was the issuance of the Federal Reserve’s Federal Open Market Committee Statement. Around 1 o’clock today, the committee decided that the federal fund rates should stay the same, being between 1% and 1.25%. Although it was left unchanged, many believe that the committee will reconvene in December to decide whether there will be an increase in the rate. Investors and currency speculators have a strong belief that this is when the rates will increase. Other factors in the current economy include the strong job reports and the low unemployment rate. Current†¦show more content†¦Reading Draghi’s speech, we received a tone of hopefulness for the European Union and the value of the Euro. A key factor that I believe made the Euro appreciate today was the assurance of European banks. He mentioned that there will be new accounting standards with the implementation of IFRS 9 in 2018. This new set of rules is a major advancement from previous standards and requires banks to classify and measure financial liabilities and assets in a more stable and reliable way. To prevent another 2008 crisis, banks are also required to identify a problem at its source. It would also be worth mentioning that a 40 pip appreciation for the US Dollar is not a huge move. After yesterday’s speech from the Federal Reserve, many investors are still processing the information given to them. The US Dollar has stayed relatively flat. Today on the 22nd of September, 2017, there was an abundance of news being released from the European Union, while The United States had minor news releases, that we believe were not as impacting. The first news release that we want to speak about is the second speech from the European Central Bank’s President, Mario Draghi. He spoke today in Irela nd and his main topic of discussion was youth unemployment rate throughout the European Union. This topic was not very impactful because he was reiterating facts that have already been stated. We personally believe that he spoke on this topic to give the youth a more hopeful outlook on theShow MoreRelatedEconomics Affects Our Daily Life1576 Words   |  7 Pagesof production, demand and supply analysis, consumption, distribution, market structure etc. Question 1 Economics can be classified into two main branches, which are macroeconomics and microeconomics. Macroeconomics refers to study of economic aggregates (aggregate demand, aggregate supply etc.) while Microeconomics refers to study of behavior and performance of individual parts of economy such as firm or household. 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