The U.S. dollar has growth potential

  • And
  • +A

It is time for the bears – the fed meeting on September 26 will give a further momentum to the dollar. Already on expectations in connection with the General opinion of all the members of the fed, even supporters of the “soft” policy suggests raising interest rates above 2 %.
New week continues to point to the strengthening of the dollar. Press conference of the ECB on Thursday did not surprise anyone. Short-term strengthening of the Euro against the dollar to the level of 1.1720 was to be expected – the bulls were able to get the most from the speech of Mario Draghi. Further movement to 1.1550 – only a matter of time. Discuss changing monetary policy until September 2019, as inflation did not accelerate above 2%. Consumer prices as one of the drivers does not allow the European currency to obtain additional support for the long term, and this is “American”.
Statement by Donald trump that friendly mood Japanese partners may change, as soon as he tells Japan how much will need to pay the duties on goods, introduces additional risks to the Japanese economy. GDP shows a positive trend, but in the hands of the Bank of Japan to support its currency in the corridor 112 — 114 dollars for Japanese yen.
The British pound can not get rid of the dangling cargo in the form of Brexit. Progress in resolving the issue, we will not see for a long time. All meetings are held in a positive way, but actually the decisions at the moment. Also there are issues over control of the goods to be delivered in Northern Ireland – this issue is important to move forward. These anchors do not allow for maneuver and create significant costs for the UK economy. We can expect the pound to 1.2900.
Renat Abdurakhmanov
Financial analyst,
Larson & Holz