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- FED lift the dollar and EUR and JPY decline due political uncertainty
FED lift the dollar and EUR and JPY decline due political uncertainty
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Loading...The dollar hit a 1.5-month high today, amid good US production figures and the Fed's biggest chance of raising interest rates - 69.9%. The dollar index rose 0.23 percent to 93.770 levels, the highest since August 17. Technically, the index managed to break down the downward channel and after a successful retest began to rise. The reasons why the greenback continues its rise are the familiar Fed themes and good economic data.
The euro traded by -0.21% lower than the beginning of the day, with traders worried about the strong result of the Independence Referendum in Catalonia, as Spain is the fourth largest economy in the eurozone and the region contributes 19% of total GDP the country. Meanwhile, weak election results in Germany still have a negative impact on the euro. Merkel is negotiating with potential coalition partners, but according to experts, it is very likely that we will not see a ready government by the end of the year.
Japanese Prime Minister Shinzo Abe dismissed the lower house of parliament and summoned early elections on October 22nd. Abe's ruling party seems to have no trouble winning, but this slight victory seems less likely as Yuriko Koike continues to build a union of opposition parties to challenge the Liberal Democratic Party of Abe.
The Australian dollar dropped 0.4% to $0.7792 or to July 18 levels. RBA kept interest rates at a record low of 1.5% and the bank said local economic growth is expected to grow gradually over the next few years. As a problem with the economy, the bank believes that weak wage growth and high household debt will have a negative impact. This in turn will lead to an additional drop in the Australian.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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