In his comments at the beginning of last week, the head of the US Federal Reserve Janet Yellen expressed concern about a weak report on non- agricultural sectore, and at the same time she said that should not be given too much importance to data for one month. However, the probability of the FRS increasing the interest rate at a meeting which will take place this week, significantly decreased, but, despite this, the US dollar has kept positive dynamics in the pairs with many of its competitors, with the exception of the Japanese yen.
The risks of the UK's exit from the European Union, base on the results of the upcoming referendum, increased the demand for assets-"shelters", which traditionally include gold, the Swiss franc, and, of course, the Japanese yen. The last one is in steady demand, on which background the dollar in tandem with it fell to the support in the area of 106.25, but with the beginning of the new trading week, broke i through and tested the level of 105.81. In general, from the Bank of Japan is not expected any actions this week, but further strengthening of the yen may force it to resort to additional stimulus measures.
As expected, the British pound remains vulnerable in eve of referendum in the UK. The high probability of "Brexit" and related to that event of negative consequences for the British economy has a negative impact on its dynamics, so it is decrease in tandem with the US dollar and cross-rates with other currencies continued, and this trend will continue at least until the referendum, which should be considered by the IAFT traders. Undoubtedly, the results of the poll can provoke bursts of volatility, but according to everything, the number of opponents of "Brexit" hardly will exceed the number of its supporters. BlogLinks
Best regards, AffiLinks
International Association of Forex Traders
No comments:
Post a Comment