The
US dollar fell to its lowest level for the
last 8 weeks against 10 major currencies.
This happened when during the Asian
session were submitted new disappointing economic data from China,
which further strengthened speculation that the Fed will refrain from raising
interest rates next month.
A report from China indicated that industrial activity in August has shrank by fastest
pace in six and a half years. This means that economic growth is slowing
sharply, which will lead to a significant slowdown in global economic growth.
The US Federal Reserve will refrain from interest rate hikes in the next month,
and even until the end of the year. Inflation slowed down minimally in July,
and the forecasts are that the slowdown will continue in August as the strong
decline in energy prices leads to a decrease in prices in a number of goods and
services.
As an external factor that could affect the Fed's decision, analysts define the
crisis in China. Slowing growth in Asian countries leads to weaker trade
between China and the US and a reduction in economic activity, which according
to experts will have direct pressure on the US economy.
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