Where the Fed succeeds, fails BoE: the dollar remains buoyant while the pound is not thought to its central bank.
Investors used the ¿excusa¿ of the weak employment data in the United Kingdom to bet against the British currency. The demand for euro continues to fall, but experts call to look beyond the February data.
After the Fed and BoE, it is the turn of the European Central Bank (ECB). The monetary supervisor to turn heads investors Thursday with the publication of the minutes of its meeting on 25 January after a day marked by central banks in the US and UK. Currencies are not left out of the high volatility in financial markets on Wednesday and left rocked by the comings and goings, which is especially noted in the ‘cable’ (pound / dollar), while the euro continued to slide below $ 1.23, where it is held on Thursday, to a minimum of 20 days at $ 1.2260.
Lack of demand for the single currency, which is pressed between a moderate worsening economic conditions and uncertainty at the political level between Germany and Italy, has increased amid concerns that the document from the central bank show your concern the strength of the currency. If so, Danske Bank analysts believe that “the market will show doubts about the rally starring the euro since late last year.” However, these experts advise for clues about “change in orientation in the markets that could come in March and will underpin the ‘shared currency’ ‘.
In other currencies, continue to be felt the effects of the action of monetary supervisors in the US and UK. Was the Federal Reserve (Fed) who played a prominent role. The minutes of its meeting on 30 and 31 January confirmed the optimism displayed by the central bank and specifically. The members of the Federal Open Market Committee (FOMC) claimed that “the rate of economic growth in 2018 would exceed its estimates on a long-term sustained pace and that labor market conditions would be strengthened even more.” Therefore, it increases “the possibility of a gradual upward rate path is appropriate.”
Investors have taken this document as a ratification of the three rate hikes in 2018 and, therefore, the dollar received a new boost in his recovery from multi-year lows against its major rivals. In addition to the euro, the yen has returned to one-week lows on the 107.70 / 50 yen against the ‘greenback’ and the index measuring its performance against a basket of rival currencies has soared to one-week highs in the 90.166 points. Representing a 2.2% comeback from three-year low last week.
The pound, meanwhile, remains at one-week lows below 1.3900 dollars, even though the Bank of England (BoE) for its acronym in English “and does not hide that he is willing to tighten monetary politics.