Wednesday , January 20 2021

markets | The Fed is planning a new interest cut in December, the dollar at the highest level of 16 months



The dollar has reached a maximum of 16 months on a basket of currencies on Friday after the US Federal Reserve said it would leave interest rates unchanged ranging from 2 to 2.25 percent but maintained its plan to gradually caps the CAP to increase the probability of transmission. This will also be the fourth-year interest rate this year, which will be on the back of the growth of the US economy, accelerating inflation and high levels of employment. Following the Fed announcement, interest rates on two-year US bonds increased to 2,977%, the highest level over 10 years.

"Our view is that the Fed is aiming to act constructively." Bankers do not want to force things, "said Tim Cortney, investment manager of Exencial Wealth Advisors.

Central bankers expect the gradual increase in the target range of interest rates to be in line with sustained growth in economic activity, strong labor market and 2% medium-term inflation.

The Effect of Elections

Analysts also analyze the results of the Congress's interim elections on Tuesday and their impact on US economic policy. The US dollar has drastically reduced its value due to the expectation that the vote will be made additionalThey tax incentives are unlikely. On Friday, however, the dollar outperformed other currencies.

Consequences

In forex markets, the focus of investors is on the differences between US monetary policy and other major economies. On Thursday, the euro depreciated against the dollar by 0.55% to 1.1361, while the pound lost 0.49% of its value and traded at $ 1,306. This happened after the EC faced the eyes of the Italian city for two years. The European currency also fell for the Japanese yen by 0.25% to 129.28 yen / euro.

Friday cytpinta yaponcĸata valyta ce vazctanovand cppmccccccccccccc, cdcd reaching a bottom of five weeks, ranging from 113.92 yen to 114.07 on the stock market. Due to the rise of the dollar against the euro and yen, the dollar index rose 0.75% on Friday. For the last time, the index was 96,674.

On Friday morning, the pound sank by 0.1%, to $ 1.3046. the BATs are expected to have a low incidence rate of 2.3%, compared with 0.2% of its value in the opacity range to be compared to the taphhhhhtenen between CASHT and Kitay.

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