empty
 
 
26.06.2019 12:23 PM
The dollar is expected to return to growth, but will it last long?

This image is no longer relevant

As expected, the dollar rose against the background of aggressive comments of representatives of the Federal Reserve System. The head of the Fed Jerome Powell stressed the independence of the Central Bank from the opinion of US President Donald Trump, who insists on lowering rates. The President of the Fed of St. Louis James Bullard, who is considered one of the leaders of the "dovish", surprised investors, saying that the reduction of rates by 50 basis points "will be premature". Recall, the dollar fell last week after officials started talking about lowering rates in the coming months. Some traders thought that the Fed could cut rates by 50 basis points next month. However, yesterday's comments brought down these expectations, pushing the dollar up from three-month lows against a basket of major currencies. The greenback rose 0.1% to 96,273 points. But the rebound will probably be short-lived. There is every reason to believe that the markets are ready for a weaker dollar. For example, against the Japanese yen, traders make large volume option bets between 107.50 and 107.00 yen.

This image is no longer relevant

The New Zealand dollar was the strongest player against the US dollar. Kiwi rose 0.4% to $0.6661, after the Reserve Bank of New Zealand left rates unchanged at 1.5%, although it signaled a possible decline. At the same time, the pound remains near five-month lows at the level of 1.2669 dollars, after Boris Johnson, the leader of the race for the post of British Prime Minister, confirmed his commitment to leave the European Union with or without the agreement by October 31.

Irina Maksimova,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $9000 more!
    In May we raffle $9000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback