Thursday, October 19, 2017

The dollar rebounded from a 5-month low, the markets assess the Fed's decision

The dollar rebounded from a 5-month low, the markets assess the Fed's decision

On Friday, the dollar moved away from a five-month low against major currencies, while markets are still evaluating the Fed's decision to cut the number of rate increases this year.

The EUR / USD fell by 0.43% to 1.1266.

The US dollar has won back losses, following the decision of the Federal Reserve on Wednesday left its monetary policy unchanged and stating that the bank plans to raise interest rates twice this year, instead of four as previously thought.

Responsible for the Fed policy officials said that the US economy faces risks associated with the uncertainty in the global economy, although a moderate recovery and a "strong employment growth" allow the US central bank will continue to tighten policy this year.

The dollar was supported after on Thursday the US Department of Labor said the number of initial applications for unemployment benefits rose last week, less than expected.

In addition, the Federal Reserve Bank of Philadelphia reported that manufacturing activity index rose to 12.4 this month from February's -2.8.

USD / JPY is stable at the level of 111.41.

Earlier Friday, the January meeting of the Bank of Japan report showed that management has made two proposals - one to expand the asset purchase program by the bank, and the other - on the introduction of negative interest rates in addition to the purchase of assets.

According to the protocol, after a meeting of the Bank of Japan finally decided to introduce a policy of negative interest rates after several members of the committee said that this step will help to prevent the influence of external factors slowing the eradication of "deflationary mindset" in Japan.

The dollar rose against the pound and the Swiss franc, with GBP / USDsnizilas 0.26% to 1.4442, the pair USD / CHF has risen by 0.25% to 0.9701.

Pound remains near month high against the dollar after the Bank of England on Thursday said that to keep interest rates at 0.50%, which was expected decision. Rate remains at this level since March 2009.

The central bank also kept the bond purchase program in the amount of 375 billion pounds.

Meanwhile, Australian and New Zealand dollars fall, AUD / USD pair decreased by 0.29% to 0.7625 and a pair NZD / USD dropped 0.73% to 0.6798.

USD / CAD pair rose by 0.15% to 1.2997, rebounding from Thursday's five-month low 1.2941.

Commodity Canadian dollar was supported as oil prices returned to $ 40 a barrel on renewed hopes for a reduction in the production of the world's major oil producer.

USD index, which tracks the US currency against a basket of major currencies, rose 0.34% to 95.10, rebounding from a fresh five-month low 94.61.


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