Macroeconomic calendar last week was full of important events, among of which we should highlight the meeting of the American, Japanese, Swiss and British central banks. Operations Committee on the US FRS open market has decided to keep the interest rate unchanged. Since this decision was expected, market reaction was rather sluggish, and the US dollar, despite the comments of the head of FRS Janet Yellen, soon again was in demand in the pairs with the euro and the British pound.
Decisions of the Bank of England and Swiss National Bank do not make any changes in monetary policy, also was not a surprise for the participants of the currency market. On the one hand, macroeconomic statistics published by the UK does not give a compelling reason to increase by the British CB of interest rate in the foreseeable future. On the other hand, the result of the upcoming referendum, could become the country's exit from the European Union, which excludes any actions by central bank on the eve of this event.
But the inaction of the Bank of Japan was a surprise and provoked another wave of purchases of the Japanese yen, which is on the background of a possible "Brexit" was not deprived of attention from investors. However, in the second half of the week, after the murder of a British member of parliament, which led to the suspension of agitation events, speculators took profits on short positions in the euro and the pound, as well as on the long positions in the yen. This led to the growth of the euro/dollar, the pound/dollar and dollar/yen, but the risks of "Brexit" are remained and jumps of these currencies in different directions can continue, so before the referendum IAFT traders should refrain from opening the long-term strategic position. BlogLinks
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