The most anticipated events of the last week was the meeting of the two central banks - the US Federal Reserve and Bank of Japan. In anticipation of these events, the currency market was in a very sleepy state, against what the major currency pairs traded mostly in the range. Euro pairing with the USD tested the resistance at 1.1029 and then stood for a while near the psychological level of 1.1000. The British pound also tried to movebut its recovery against the dollar was limited by resistance of 1.3248. Brexit and expectations of the Bank of England to reduce the interest rate will not let him to develop of a more large-scale correction.
The Japanese yen traded in different directions. At first, it grew against the dollar, but after testing support in the area of the 104th figure rose to 106.54. Comments of Japanese prime minister have raised expectations of expansion by the Bank of Japan of stimulus measures that put pressure on the yen. Following the results of the meeting, the Bank of Japan increased volume purchase program ETF, but left the interest rate and the monthly volumes of quantitative easing unchanged.Thus, his actions were not as radical as market participants were expecting, that returned appetite for purchases of the yen. As a result, it has completed the week higher against many of its competitors, and its prospects now look more constructive.
Federal Committee Operations on the US FRS open market decided to leave interest rate unchanged. Overall, this decision was expected, but in his comments, despite the cautious optimism regarding the prospects for the US economy, the FRS has made it clear that the rush with the rate increase is still not, on what, the markets reacted by the moderate sales are of the US dollar.On this background the euro in tandem with it closed the week at the resistance area of 1.1180, and this in somewat improves the technical perspective. However, the fundamentals do not give a good reason for purchases of the single currency, so a significant increase over the 12th figure seems unlikely, that should be considered by the IAFT traders. BlogLinks
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