Dollar: Careful comments, the fed stopped the growth
The dollar’s rally stalled yesterday after a surge in purchases, although in General the currency has been doing well, considering that in Europe, investors manage to be cautiously optimistic in terms of tension on all fronts. The focus is still Brickset and Italy, which prevent the European currencies to spread your wings.
These two factors can play into the hands of U.S. currency, if the events will develop in the negative scenario. Also in favor of the USD is able to turn the mood of global investors in General. Fears for the health of the global economy are becoming stronger progress in trade negotiations, the U.S. and China is not. And today, the OECD lowered its global growth forecast for 2019 from 3.7% to 3.5%. And it may worsen the attitude toward risk in the medium term, should the demand for the dollar, of course, if you do not begin to “limp” the American economy.
The recent cautious tone of the fed spooked the dollar bulls that started to doubt that the regulator will be able to realize the promised pace of policy tightening. Next week the fed will release the minutes of the last meeting, which will shed light on the attitude of the Central Bank and the assessment of the risks to the country’s GDP. In anticipation of this event can appear speculation about easing of the position controller that is able locally to put pressure on the USD. However, to reverse the upward trend this year will only clear signs of a slowdown in the us economy.
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