In anticipation of tomorrow's FOMC meeting of the American dollar shows stability on Forex.
Despite the positive macroeconomic data, which are published in recent years, the U.S. dollar holding fairly steadily across the spectrum of the market forex. Growth spurt of risk appetite, which occurred after the publication of positive data on U.S. GDP, ISM, as well as data on construction and housing sales in the United States, have limited impact on the dynamics of the market forex.
Forex analysts are attributed to the fact that now the participants of the forex market cautiously awaiting the decisions of the world's leading central banks, which will be announced this week.
So, today the Reserve Bank of Australia, despite the fact that increased interest rates at 0.25%, hinted at a possible pause in the cycle of tightening its monetary policy, which certainly affected the Australian dollar.
Some experts point out inconsistencies in the actions of the RBA with other leading central banks of the world, which led to excessive growth of the Australian currency across the spectrum of the market forex. Therefore, the forthcoming decision FOMC (November 4) may be the key not only to determine the prospects for monetary policy the Fed but also other central banks that want to coordinated action in a departure from ultrasoft monetary policy. Probability that tomorrow the U.S. Federal Reserve will provide any clear indication of the imminent rise in interest rates, virtually zero.
Nevertheless, given that the main program to repurchase the assets coming to an end, the Fed should describe the future of the program of quantitative easing. Some analysts expect the announcement of the transition to a neutral monetary policy.
Such expectations positively affect the U.S. dollar exchange rate, and perhaps they do not allow the dollar to fall heavily after the publication of positive U.S. data.
Thus, we can assume that in anticipation of tomorrow's FOMC decision forex market participants refrained from active operations, and the U.S. dollar will continue to receive moderate support from expectations that the Fed move to a neutral monetary policy.
Despite the positive macroeconomic data, which are published in recent years, the U.S. dollar holding fairly steadily across the spectrum of the market forex. Growth spurt of risk appetite, which occurred after the publication of positive data on U.S. GDP, ISM, as well as data on construction and housing sales in the United States, have limited impact on the dynamics of the market forex.
Forex analysts are attributed to the fact that now the participants of the forex market cautiously awaiting the decisions of the world's leading central banks, which will be announced this week.
So, today the Reserve Bank of Australia, despite the fact that increased interest rates at 0.25%, hinted at a possible pause in the cycle of tightening its monetary policy, which certainly affected the Australian dollar.
Some experts point out inconsistencies in the actions of the RBA with other leading central banks of the world, which led to excessive growth of the Australian currency across the spectrum of the market forex. Therefore, the forthcoming decision FOMC (November 4) may be the key not only to determine the prospects for monetary policy the Fed but also other central banks that want to coordinated action in a departure from ultrasoft monetary policy. Probability that tomorrow the U.S. Federal Reserve will provide any clear indication of the imminent rise in interest rates, virtually zero.
Nevertheless, given that the main program to repurchase the assets coming to an end, the Fed should describe the future of the program of quantitative easing. Some analysts expect the announcement of the transition to a neutral monetary policy.
Such expectations positively affect the U.S. dollar exchange rate, and perhaps they do not allow the dollar to fall heavily after the publication of positive U.S. data.
Thus, we can assume that in anticipation of tomorrow's FOMC decision forex market participants refrained from active operations, and the U.S. dollar will continue to receive moderate support from expectations that the Fed move to a neutral monetary policy.
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