Currency News: USD Is Expected To Continue Strong?
Currency News
The attention of market participants commented about Janet Yellen statements of the Federal Reserve System. If Yellen noted that the Fed will not remain neutral, and set rates this year, the EUR/USD will fire up. But if not, the Fed remains neutral, the market will experience strong fluctuations up and down
The dollar extends losses on other major currencies on Tuesday as concerns raised about global economic growth still determining market confidence. On the other hand, if the dollar continues to fall against the yen also it must be takien into consideration the statements Yellen offered this week on the economy. If the president of the Fed shares Dudley cautious forecasts, the dollar will resume its decline but if Yellen shares Dudley cautious forecasts, the dollar will resume its decline but on the contrary, Yellen put to good brave face, as it is believed, the dollar could recover considerably.
If we take away, but maybe the Fed has reason to slow their adjustments this year, most economic data indicate that the performance of the United States has exceeded that of many major economies, the end of the day should do greenback more attractive. The problem is that everyone took long positions in the dollar and the wake up call Dudley last week has spooked many investors. For the dollar to regain strength, Yellen would need to show their approval in the form of a constant optimism about the economy of the nation.
In contrast to the Euro, the Pound lost ground against the Dollar as the decline in bond yields in the UK exceeds the drop in Treasury rates.
In conclusion, this year continue to be unpredictable, and we should follow also what will happen with the Oil and Gold.
