• American focus: the dollar fell

Noticias del mercado

19 agosto 2015

American focus: the dollar fell

The US dollar fell against the euro and the yen on the eve of the publication of minutes of the last meeting of the Federal Reserve System. Investors are worried that they do not clarify the intentions of the central bank in relation to raising interest rates.

Some investors believe that it is not necessary to pay attention to the minutes of the July meeting of the Operations Committee on open market the US Federal Reserve in connection with the latest developments. Moreover, some market participants fear that the opinion of the Fed has changed under the influence of the sudden devaluation of the yuan by the Chinese authorities last week. Actions Beijing led investors to revise their expectations about the Fed raising rates in September.

However, the minutes of the Fed meeting may clarify some points of the July Fed statement, especially the word about the need to see some further improvement in the labor market before raising interest rates. Investors are also interested in any change in the opinions of members of the Operations Committee on open market the US Federal Reserve with respect to raising rates in September and forecasts about the prospects for the global market. China's stock market crash occurred just at the time when there was a meeting the US Federal Reserve.

Investors bet on further growth of the dollar in anticipation of the Fed raising interest rates, which are at near-zero levels. Higher borrowing costs would increase the attractiveness of the dollar for investors.

More recently, investors cut long positions on the dollar, expecting a clear hint of rising interest rates in September. Market participants continue to hope for further strengthening of the dollar, but the uncertainty about the timing of the first rate hikes the Fed restricts the rate of growth for most of 2015.

Pressure on the dollar was data on US inflation. US consumer prices continued to rise in June, writing while sixth monthly increase in a row. However, the growth rate slowed down compared to June, and was lower than the forecasts of experts. This was reported in the Ministry of Labour.

According to the data, the seasonally adjusted consumer price index rose 0.1% in July, against an increase of 0.3% in the previous month. Meanwhile, the core index, which excludes prices of food and energy, also increased by 0.1% after rising 0.2% in June. Economists had expected the index to grow both at 0.2%.

Compared to last year, overall consumer prices rose by 0.2%. This is a slight increase, but the index recorded its second consecutive monthly increase after remained unchanged from January to May. Basic prices increased by 1.8% compared to July 2014, and since June. Add the annual change in these indicators in line with expectations.

The Swiss franc strengthened against the dollar, reaching the highest level since August 12. Experts note that the franc strengthened with the euro in anticipation of a positive outcome of voting in the Bundestag. As it became known today in the lower house of the German parliament decided to approve the third aid package for Greece. Parliament voted 454 votes to 113 for the program of aid to Greece. It was assumed that its lower house, the Bundestag, approved the program. However, there were concerns that the vote against the party of Chancellor Angela Merkel. Earlier today, the Ministry of Finance of Germany Schaeuble said the Bundestag must approve the agreement by Greece, as it would be irresponsible not to give the country a fresh start. He also noted that "if Greece uses this opportunity or not - in the hands of the Greeks. It is a bargain for Greece and for Europe." "The participation of the IMF in a program of aid to Greece - a prerequisite of the German government. There is no doubt that the IMF will join as soon as the necessary conditions are met," - said Schauble.

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