Last week, were held a number of meetings of the world's central banks, in some extent, affected the currency market. The Bank of Japan decided to leave the interest rate and the volume of the asset purchase program unchanged. As was the probability that ECB will resort to the introduction of additional stimulus measures, market participants reacted to the decision of purchases of Japanese yen, against which the US dollar in tandem with it fell again, this time having tested a new minimum at the level of 110.66. It should be noted that stock indexes at the same time showed a positive trend.
Federal Committee on the US FRS open market did not raise interest rate, which coincided with forecasts of analysts. However, FRS comments appeared to be more "soft" than market participants were expected, lowering, thus, the expectations by the FRS increases of interest rate during this year. The market's reaction became a very large-scale sale of the dollar, increased pressure on the dollar/yen and returned the euro/dollar to the resistance in the area of 1.1342.
The Bank of England is also did not make any changes in its monetary policy, by leaving the interest rate and amount of the asset purchase program unchanged. At the same time in their comments the head of the central bank has highlighted the great probability of a rate hike later this year, allowing the British pound to recover together with dollar to the 45th figure. Thus, the past week has been very unsuccessful for the bulls on the dollar, but, taking into account the fundamental factors, the differential of the monetary policies of the above central banks, as well as a referendum on the exit of Great Britain from the EU, it can be assumed that further growth of competitors of the dollar can be fraught with difficulties on what the IAFT traders should pay attention to. BlogLinks
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