Currency news: Absolute calm in currencies?

Currency News

Currency traders are waiting for FED signals. Anxiety builds up in the financial markets and the hope for a new and more exciting outcome is in the hands of the market rebalance.

currency news

We saw a US dollar very quite against the most important currencies of the world. An important currency which showed interesting movements was the Russian Ruble (RUB) jumping about 7% last week because of the weakness of oil prices, its most relevant exportable product.

This week will be very important for US Dollar with a focus on the Federal Reserve meeting. Markets will be waiting for signals about the next interest rate hike. In December 2015, the Fed increased the interest rate for first time in 8 years and the stock markets went down strongly. Probably, monetary policy makers think that is premature to increase again the interest rate and will be waiting for a reduction of the markets volatility.

So, we expect currencies market to stay quiet if the FED doesn´t change the interest rate, but if it unexpectedly increases again could strengthen US Dollar and revive depreciation pressures in emerging markets.

Last week, Mario Draghi president of the European Central Bank insisted on continuing implementing monetary stimulus and Euro currency fell slightly against the US dollar.

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