The dollar lost ground against both the yen and the euro in the wake of the words of the chairman of the Federal Reserve, Janet Yellen, who has shown a degree of caution about the trend of future increases in interest rates. "Existing risk data for the economic outlook, I believe it is appropriate for the Committee to proceed in a cautious manner in adjusting" monetary policy, said Yellen, however, does not provide details about the timing of subsequent increases the expected rates for the 2016. the next meeting of the Fed will be held on 26-27 April.
"It seems that the president of the US central bank has blunted" the comments made by other officials earlier this month, points Koji Fukaya, chief executive of the FPG Securities. Investors are in a delicate position at the moment. Despite the cautious tone adopted by Yellen, traders can still assume an increase in anticipated rates to positive economic data trail. "Everything depends on economic performance", adds the expert. In this sense, the earth 'market their sights set sull'Ism manufacturing Use and on payroll, whose publication is scheduled Friday.
Overall, the Federal Reserve chairman statements make it difficult "to buy dollars" with conviction, points out a Japanese senior operator. So you might think that the exchange rate usd / yen has bottomed out from a week in the wake of a possible spill of investors towards buying yen, he points out the expert. The cross, now, is to 112.30, while the euro / yen is at 126.96.
As for the exchange rate EUR / USD, the greenback has lost much ground against the single currency at a time when it was clear that, for the US central bank, there is no rush to raise rates. Even the possibility of a rise in June, previously seen as an opportunity more likely the Fed would have opted for a tight monetary policy, could not be more on the table. This notice is Omer Esiner, an analyst at Commonwealth Foreign Exchange, which believes that the words of Yellen are not "in line with an increase in rates in April and they leave serious doubts about a rise in June." You can, however, that, today, the cross draws support from Eurozone data and on the US, "noted Kumiko Ishikawa, senior analyst Gaitame.Com Research Institute. At the moment, the Fed Fund futures indicate the probability of 5 % of a rate hike in the next meeting in April. the EUR / USD is at 1.1300.
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