Wednesday , October 20 2021

Markets The Fed plans a further cut in interest rates in December, the dollar at the highest level of 16 months


The dollar climbed to a high of 16 months in a basket of currencies on Friday after the Federal Reserve said it would leave unchanged key interest rates ranging from 2 to 2.25 percent but retained its plan to gradually boost the CAP, to increase the probability of transmission. It will also be the fourth-year rate this year, which will happen in the context of the rise of the US economy, accelerating inflation and a record high employment. Following the Fed's announcement, interest in US two-year bonds rose to 2,977%, the highest level over 10 years.

"Our view on the matter is that the Fed intends to act constructively." Bankers do not want to force things, "said Tim Cortney, Head of Investment Services at Exencial Wealth Advisors.

Central bankers expect that the gradual increase in the interest rate range will be consistent with the steady growth of economic activity, the strong labor market and 2% inflation in the medium term.

The influence of the elections

Analysts also appreciate the results of the provisional elections in Congress on Tuesday and their impact on US economic policy. The dollar has considerably reduced its value, due to the expectation that the result of the vote will be Furthermorethey fiscal stimulus measures are unlikely. On Friday, however, the dollar surpassed other currencies.

The consequences

In foreign exchange markets, investor focus is shifting to 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 British pound lost 0.49% of its value and traded at $ 1,306. This was because the EC had arranged the eyes of the city of Italy for two years. The European currency also fell for the Japanese yen by 0.25% to 129.28 yen per euro.

The manufacture cypntnapaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaand cppmccccccccccccc, cdcd having reached a depth of five weeks, ranging from 113.92 yen to 114.07 in the stock market. Thanks to the dollar against the euro and the yen, the dollar rose by 0.75% on Friday. For the last time, the index was 96,674.

On Friday morning, the pound sank 0.1% to $ 1.3046. Bappectively, it has been estimated to have a low incidence rate of 2.3% below the average of 0.2% of its value from the Zapadi opaceniyata ycilvane na nappezhenieto to tapgovcnejite otnosheniya medzi CASHT and Kitay.

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