empty
 
 

Forex Analysis & Reviews: The Fed gave a start to a weaker dollar (We expect the EUR/USD pair to continue growing and USD/CAD to decline)
time 20.06.2019 12:42 PM
time Relevance up to, 01.01.1970 03:00 AM

As expected, the outcome of the Fed meeting dealt a heavy blow to the US dollar, which at the auctions in Asia continued to fall almost vertically against all major currencies at the auctions in Asia.

The decision of the Federal Reserve to remove the word "patience" from the resolution with regard to its view of the current monetary course and the generally "dovish" statement by Central Bank head Jerome Powell. Although they were expected by the markets, it turned out to be a kind of surprise. The balance of power among the voting members of the Federal Open Market Committee (FOMC) showed that almost half of the voters consider it possible up to three increases in interest rates in the current year. It is likely that this will be done at the July, September and December meetings of the regulator.

Also, a general decrease in forecasts for economic growth and the absence of an increase in inflationary pressure contributes to broad sales of the US dollar at least until 2021. Given this, we believe that in the foreign exchange markets, the overall negative trend towards it will only increase.

The weakening of the US currency has also contributed to an increase in investor interest in commodity assets traded in dollars. Gold has risen sharply in price and it receives support despite the ambiguous situation surrounding the factors affecting crude oil quotations. Although, it is not so noticeable. Of course, a significant role is played here by a strong increase in oil production in the States, as well as signals that the global economy has slowed down against the background of a worsening trade war between Washington and Beijing.

In our opinion, yesterday's outcome of the June Fed meeting is a landmark event and represents the beginning of a period of change in the monetary policy of the world's largest central bank. Given these prospects, we can talk about the beginning of a global trend to the weakening of the US dollar, which can increase if the Americans and the Chinese manage to agree on the terms of mutual trade.

Forecast of the day:

The EUR/USD pair is above the level of 1.1260 in the wake of the global weakening of the US dollar. The pair may continue limited growth despite the expectation of lower rates from the ECB. If the price overcomes the 1.1285 mark, it can continue to grow to 1.1345.

The USD/CAD pair is trading below the local minimum of 1.3235. We believe that the pair will continue to fall to 1.3100 against the background of falling interest in the US dollar, as well as oil attempts to price increase.

This image is no longer relevant

This image is no longer relevant

Pati Gani,
ผู้เชี่ยวชาญด้านการวิเคราะห์ของ InstaForex
© 2007-2022
ข้อดีจากการอ่านคำแนะนำของนักวิเคราะห์ได้แบบทันที
ฝากเงินเพิ่มเข้าไปในบัญชีการซื้อขาย
เปิดบัญชีการซื้อขาย

บทวิเคราะห์ของทาง InstaForex จะทำให้คุณทราบถึงแนวโน้มของตลาด! ในการที่เป็นลูกค้าของทาง InstaForex นั้นคุณจะได้รับการบริการเพื่อการซื้อขายอย่างเต็มประสิทธิภาพอย่างมากมาย

  • เทรดให้ดีแล้วคว้ารางวัล
    เติมเงินในบัญชีของคุณอย่างน้อย $500 สมัครเข้าร่วมการแข่งขัน และลุ้นรับรางวัลอุปกรณ์ติดต่อสื่อสารแบบพกพา
    เข้าร่วมการแข่งขัน
  • เฟอร์รารีจาก InstaForex
    เติมเงินในบัญชีของคุณอย่างน้อย $1,000
    เข้าร่วมการแข่งขันและรับรางวัลเป็นรถเฟอร์รารี่
    F8 Tributo
    เข้าร่วมการแข่งขัน
  • Chancy Deposit
    ฝากเงินเข้าบัญชีของคุณด้วย $3,000 และรับรางวัล $1,000
    เข้าร่วมการแข่งขัน
  • โบนัส 100%
    โอกาสพิเศษของคุณในการรับโบนัส 100% จากเงินฝากของคุณ
    รับโบนัส
  • โบนัส 55%
    สมัครรับโบนัส 55% สำหรับการฝากทุกครั้ง
    รับโบนัส
  • โบนัส 30%
    รับโบนัส 30% ทุกครั้งที่คุณเติมเงินในบัญชีของคุณ
    รับโบนัส

Recommended Stories

EUR/USD. Unforeseen event circling over traders

EUR/USD bulls have exhausted their potential, which was based on rumors of a slowdown in the pace of monetary policy tightening by the Fed. Traders fear a "black swan"

Irina Manzenko 22:49 2022-12-08 UTC+2

Inflation refuses to rise, failing the Fed and the ECB

Economists are concerned about signals from the world market. Data shows behavior that is contrary to expectations and probabilistic predictions based on historical data and economic theory. The reputations

Egor Danilov 22:49 2022-12-08 UTC+2

Euro: news

EURUSD The weekly U.S. jobs report is out - not huge - but there isn't much news this week. Applications for unemployment benefits rose to 230,000 for the week ending

Jozef Kovach 22:48 2022-12-08 UTC+2

The euro didn't get ahead of the curve

Why is the euro rising? It would seem that the EURUSD bulls have plenty of obstacles. The federal funds rate is higher than the ECB deposit rate. The U.S. economy

Marek Petkovich 22:48 2022-12-08 UTC+2

AUD/USD in a range. Is the bullish correction near its end?

Since the middle of last month, the pair has been trading mainly in a range between 0.6635 and 0.6835. Crossing this range to one side or the other might determine

Jurij Tolin 22:48 2022-12-08 UTC+2

Bitcoin accounts of Binance users are 101% secured with BTC

On Wednesday, the long-awaited report from South African auditing company Mazars was made public. It stated that the largest cryptocurrency exchange in the world, Binance, has direct control over

Irina Yanina 08:49 2022-12-08 UTC+2

Data on US inflation to determine market trends in foreseeable future (GBP/USD and AUD/USD)

It seems that high volatility could be seen only in the stock market. What is more, the satiation in both stock and currency markets is very uncertain. Yesterday, the currency

Pati Gani 08:28 2022-12-08 UTC+2

USD/CAD. The Bank of Canada is not an ally of the loonie

The Canadian dollar did not benefit from the Bank of Canada's December meeting. On the contrary, the loonie weakened noticeably against the greenback: the USD/CAD pair reached its monthly high

Irina Manzenko 08:08 2022-12-08 UTC+2

Analysts cast doubt on soft landing

Soon all three major central banks will announce their rate decisions. However, I'm not particularly interested in speculation about the size of rate hikes by central banks. Recently, there have

Chin Zhao 06:33 2022-12-08 UTC+2

GBP/USD. Overview for December 8. The Democrats won the Senate election.

On Wednesday, the GBP/USD currency pair maintained its position above the moving average line. Consequently, we can once more state that there has been a slight decline in the pair

Paolo Greco 04:10 2022-12-08 UTC+2
หากไม่สะดวกคุยในตอนนี้
ระบุคำถามไว้ได้ใน แชท.