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Dovish Fed Keeps Driving the Dollar Down2/9/2020
Traders expecting Wednesday‘s FOMC meeting to reverse the dollar’s fortunes, received a rude awakening as a dovish policy statement continued to heap pressure on the USD.To get more news about WikiFX, you can visit wikifx official website.

  With the economy showing little sign of recovery from the devastating Covid-19 driven recession that we currently find ourselves within, the Fed left interest rates at near zero levels and vowed to continue “acting as appropriate to support the economy.”

  Jerome Powell also implored Congress to help stimulate the economy through supportive fiscal policy, but the ultrasensitive and divided US political landscape certainly doesnt help.

  There‘s no way today’s FOMC statement can be viewed any way but as a dovish message to markets, with the Feds intention to maintain highly accommodative policy for “as long as it takes.”


  Most likely were talking years here.

  The actual July FOMC statement was little changed from June, but did feature the following addition: “The path of the economy will depend significantly on the course of the virus.”

  The irony of the Fed speaking about there being no tradeoff between the US economy and public health on the same day that the countrys Covid-19 death toll ticked above 150,000, is not lost on me.

  A devastating milestone that looks nowhere near a top, with California, Texas and Florida all also reporting record numbers of daily deaths.

  “Even if the reopening goes well and many, many people go back to work, it is still going to take a fairly long time for parts of the economy that involve lots of people getting together in close proximity” said Powell in his accompanying, socially distanced, virtual press conference.With markets becoming increasingly addicted to stimulus, we know support means free money and as you can see below, the markets reacted accordingly.

  The US Dollar Index (DXY) remains under pressure, reaching support not tested since 2018.

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With the Best Performance2/9/2020
Recently the global stock markets soars with irresistible force, the Chinese and US stock market in particular. And driven by new economy, the Nasdak Composite Index hit record high many times, and it closed at 10,492.50 on July 8, another record close high.To get more news about WikiFX you can visit wikifx official website.

  This decreased the pressure on USDs liquidity from the market and weakened the safe haven function of USD, putting continuous pressure on the US dollar index. In the short term, the index is more likely to test the low level of 95.716 recorded in May. If it fails to break the level, the index may challenge the low level of 94.650 happened on March 9.


  Faced with a weakening US dollar index, non US dollar currencies bounced back in varying degrees. From a perspective in Macro trend, the Swiss Franc has the best year-to-date performance, up about 3.5% again the USD, ranking the first among all currencies. And safe haven Japanese yen ranks the third, up 1.34% this year, second only

The Swiss Franc performed extremely well because of the relatively stable situation of COVID-19 and better economic data in Switzerland compared with that of other European countries. Therefore, forex traders preferred the Swiss Franc to USD as a safe haven. And market estimates that the Swiss Franc will keep maintaining an edge in the second half of this year. In the short run, USD/CHF appears to approach the low level of 0.9181 of March or the low level of 0.9071 recorded in 2015.

  It is estimated that cautiously optimism pervades the future Japanese yen market, another safe haven. Recent USD/JPY basically fluctuates at the range of 108.16-106.00, being approaching the level of 106.00. And it is likely to break the level and challenge again the major support level of 104.45.

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