cabFed805121

The dollar didn’t have enough optimism

 
     After trying to recover, the US dollar index again descended to the area of weekly lows to the level of 97 basis points. The reason for weakening of the US currency was a lack of optimism, sounded at the last meeting of the Federal Open Market Committee.
 
     As a whole, yesterday’s protocol, as expected, was optimistic. Most members of the Federal Reserve consider that it is not necessary to delay the tightening of monetary policy, because they think that economic indicators will be restored to the next meeting of the Federal Reserve. But even so, several participants expressed their concerns about the slowing of inflation and the desire to wait for higher economic indicators.
 
     That was enough that the US dollar sagged against the basket of major currencies. For now, the indicators from the US indicate a slowdown in economic growth. If this continues, participants who doubt to the expediency of raising interest rates at the June meeting of the Federal Reserve will be much more, this in turn may lead to the Fed will take a wait-and-see attitude. Than it threatens for the dollar, knows everyone. Last year, statistics in the US showed better results, which pushed the greenback to strengthen, but the inactivity of the Federal Reserve each time led to weakening of the dollar. Now if the Fed will be waiting, and indicators will decline, the dollar will fall faster than recover.