USD lost positions after Fed meeting

Noam Stiekema

USD lost positions after Fed meeting and the report about it. The document became clear that central bankers reluctant to increase interest rates, but the intended closure of the era of printing money compared to expectations. The eyes of market participants will be directed to today’s meeting of the Bank of England, which will decide […]

Thousand USD

Thousand USDUSD lost positions after Fed meeting and the report about it. The document became clear that central bankers reluctant to increase interest rates, but the intended closure of the era of printing money compared to expectations. The eyes of market participants will be directed to today’s meeting of the Bank of England, which will decide on interest rates. The meeting minutes of the Fed confirmed initial expectations that monthly bond purchases will be terminated at the end of October. This will be an end of an unconventional method of dealing with crisis situations, namely printing massive amounts of money to stimulate consumption and speed in the country. Launched at the height of the financial crisis repurchase program of bonds so far been pumped into the economy over 2 trillion USD.

The investors’ expectations that the transcript of the meeting, the Fed will provide more light about the intentions of the institution to raise interest rates, proved futile. The meeting was not discussed moment to begin the rise, and this has created speculation that central bankers reluctant to taking this course. The financial markets are anxiously awaiting the rise in interest rates on the world’s leading currency and the uncertainty about the exact time when this will happen, scored major pairs in a relatively narrow trading range in recent months.

One of the biggest losers in currencies today proved to be the Australian dollar, which wiped out about 0.1% of its value since the publication of data on unemployment in the country. Increased level of unemployment in the country raising fears that economic growth is slowing. This in turn increased speculation that the increase in interest rates, which is underway, will be suspended for a period of time. One of the main events today will be connected with the meeting of the central bank of the United Kingdom. The decision on the interest level in the country will be published at 14:00 CET. Estimates are that the institution will maintain its current policy and the base rate will remain unchanged at 0.5%.

The EUR was traded at 1.3630 against the USD, which is close to the lowest values ​​for today. The pair GBP/USD is trading around 1.7130, while USD/JPY rate was 101.50.

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