Many of us
may be wondering why the Dollar has lost its bullish momentum if the
fundamentals from the US have been coming out better than expected. The reality
is that even though new jobs have been created in the United States and the
unemployment rate has dropped, this has failed to provide higher wages for the American
workers. Therefore, inflation is not a problem for the US economy at the moment
and the FED is in no rush to raise its interest rates. Today’s FOMC minutes may
show that the central bank is holding on raising rates until they see prices
really going up. That is why most investors are preferring to stay on the
sidelines and are not raising their bets on the greenback just yet.
Great post! I fully agree with your view.
ReplyDeleteThe EUR climbed even more after the FOMC minutes.
ReplyDeleteVery helpful article.
ReplyDeleteVery Good analysis. The doubt is large!
ReplyDeleteUseful analysis, thank you.
ReplyDeleteThank you for this post. Very Helpful.
ReplyDeleteI agree with your point of view.
ReplyDelete