Feds are weighting rate increase but there are no movement yet


“The allusions of the US monetary policy body have for now put a floor below the dollar rate and further strengthened the resistance zone for the euro of $ 1.2250”, said currency trader Stéphane van der Meer of currency smoker Ebury on Thursday to ABM Financial News.

Central bankers of the Federal Reserve are increasingly suggesting that the bank is looking forward to the right time to change its smooth monetary policy. This was revealed on Wednesday by comments from the Fed presidents of the Federal Reserve in respectively St. Louis and Atlanta.

In mid-June, the Fed meets again for a policy meeting, during which Van der Meer assumes that the Fed will return in his explanation to the moment when tapering and the extent to which it can become topical.

With the Fed minutes on the table, as far as Ebury’s merchant is concerned, attention shifts to the weekly support applications in the United States. Friday is important for the foreign exchange markets with numerous purchase dates for May on the role.

On Thursday, in addition to the aid applications in the US, the Philadelphia Fed’s activity index in May and the leading indicators in april will be on the agenda. Aid applications are estimated at 452 000 as against 473 000 applications a week earlier.

There is one other speaker today and that is the president of the Dallas Fed Robert Kaplan.

Japan’s exports increased considerably in april, while machine orders fell sharply. However, the latter figure is very volatile. German producer prices rose significantly on an annual basis in april, but increased on a monthly basis slightly less than a month earlier on the same basis.

On Thursday, the euro rose by 0.1 percent at $ 1.2188. The European currency recorded 0.1 percent higher at 0.8636 British pounds. The British pound recorded unchanged at $ 1.4113 on Thursday. The dollar was flat at 6,4375 Chinese yuan. Today, the dollar fell 0.2 percent to 108.9720 yen.

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