19.06.2014 - The dollar weakened after the Fed statement
of euro rose again after the announcement of meeting results of the Federal
Open Market Committee of the U.S. Federal Reserve. Predictably it was decided
to reduce the volume of asset purchases by 10 billion dollars to 35 billion
U.S. dollars. The interest rates have not been raised, despite the acceleration
of inflation in the last month. In addition, most of the committee members
expect an increase in interest rate to 1.0% until the end of 2015 and to 2.25%
by the end of 2016. Today we should pay attention to data on the U.S. labor
market (12:30 GMT), the index of leading economic indicators and Philadelphia
manufacturing index (14:00 GMT). We expect the price correction of the euro
The price of the British pound rose sharply amid falling U.S. dollar after the statement of the Federal Open Market Committee of the U.S. Federal Reserve. The price reached psychological mark of 1.70 for overcoming of which will be needed a powerful impetus. Also yesterday, were released minutes of the Bank of England in which it was stated that interest rates will be increased only in case of confidence that the economy can continue to grow under conditions of increased borrowing costs. Data on retail sales (8:30 GMT) and factory orders (10:00 GMT), can affect the mood of traders on the market. Today is possible the correction of the pound, but in the medium term, the growth is likely to continue.
The Japanese yen strengthened yesterday against the weakening U.S. dollar. It is worth noting that despite yesterday's impulse in the medium and long term quotations of USD/JPY will likely continue to rise due to the ultra-loose monetary policy of the Bank of Japan and the reduction of quantitative easing in the U.S. after the end of which will be gradually tightened the monetary policy in the United States. We expect upward correction of USD/JPY in the near future.
The price of the Australian dollar also rose against the weakening dollar. In addition, positive mood of traders was supported by rising copper prices to two-week high, and higher prices for iron ore, the price of which has overcome the level of $ 90 per ton. Quarterly Bulletin of the Reserve Bank of Australia showed an increase of investment by foreign investors. The price growth of the national currency of Australia will continue in the coming days, but in the medium term we will probably see a decrease in AUD/USD.
The growth of the New Zealand dollar quotations stopped after the release of data on GDP growth by 1.0% in Q1 2014, which is 0.2% less than the forecast of analysts. At the same time the support for the national currency of the country have a strengthening Australian dollar and yesterday's statement by U.S. Federal Reserve. We expect that in the near future the price will continue to consolidate around the level of 0.8700, but further growth is limited by the monetary policy of the Reserve Bank of New Zealand.