Euro gains weight amid a weaker dollar. Investors are betting that concerns about growth will cause the Fed to slow down the pace of rising interest rates.
The defeat on Wall Street, caused by the flow of weak data on a global scale, reinforced the view that the expected increase in the Fed rate this Wednesday will lead to a slowdown or even a pause in the three-year period of steady growth in rates. The prospect of raising rates at low gear will keep the dollar. The best of the major currencies this year, under pressure. That helps the euro, which on Tuesday rose by 0.2 percent, to $ 1.1373, partially recovering its losses. However, according to analysts at Goldman Sachs and the ECB, the balance of risks is shifting to the downside, given the protests in France, which are already beginning to put pressure on the business, it can be concluded that the euro will begin to grow only after a few months.Markets have focused their attention on the Fed meeting, trying to understand what the economy looks like against the background of the trade conflict between the US and China and the volatility of the global financial market. Probably, the dollar will remain at the same level for the time being, and tomorrow's meeting will become a significant catalyst for choosing a direction. The rise of the dollar may continue if the Fed keeps to its strategy of tightening monetary policy next year. Most likely, the Fed will continue to normalize policy next year, and fears of a recession are in vain. The economy, where there are more jobs than the unemployed, does not need large-scale stimulation, this is a reason to be optimistic about the dollar.
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