Greenback approaches 16-month maximum

Greenback approaches 16-month maximum

On Monday, the evergreen buck built on the previous week's profits and jumped to a 16-month maximum due to the fact that investors actually expect the Fed to keep tightening monetary policy, although the UK pound was still pressured against the backdrop of uncertainty over a Brexit agreement.

The major US bank has reaffirmed its plan to have interest rates lifted by up to 25 basis points already in December. What’s more, the bank is considering two extra rate lifts by mid-2019 justified by a firm economy as well as soaring wage pressures.

The US currency has also derived benefits from a broader move away from risky assets because of US-Sino trade clashes, China's economic deceleration, Brexit uncertainty, to say nothing of the everlasting conflict between Rome and the European bloc over Italy's plan for a big-spending budget as well as wide fiscal deficit.

Estimating the US dollar’s purchasing potential versus its primary rivals the USD index rallied by 0.1% ending up with 97.02, which is below its 16-month maximum of 97.2 reached on October 31. What’s more, the USD index has managed to soar four weeks in row, soaring by 0.4% the previous week.

Against the Japanese yen the evergreen buck rallied by 0.1% hitting 113.98, which is close to a 6-week minimum of 114.08. The US currency has been preferred over the Japanese rival due to the diverging monetary policies of the Fed as well as the Bank of Japan.

While the key US financial institution is on track to raise interest rates, Japan’s major bank is generally anticipated to keep its monetary policy extremely loose against the backdrop of slow surge and inflation.

By the way, the widening interest rate differential between Japanese and American bonds has made the evergreen buck a more attractive bet than the Japanese currency.

The UK pound dived by 0.25% hitting $1.2941.

 

 

 

 

Similar

Latest news

Japan real wages surge is slowest in almost two years

Japan's March real wages went down at the fastest pace in nearly two years, weighed by minor nominal pay lifts as well as a moderate ascend in consumer prices, thus posing a setback for Prime Minister Shinzo Abe's tries to revitalize the Japanese…

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera