Friday 9 October 2015

Fed remains extremely cautious

USD  was trading cautiously during the Asian session after yesterday’s pressure upon publication of the report from the last Fed’s meeting in September that increased the doubts that the central bank will raise rates this year.
Yesterday it became clear that Fed is extremely cautious and postponed the long awaited interest rate hikes to make sure that global economic downturn would not affect the US recovery. EUR /USD hit a three-week peak of 1.1328, and today is at 1.1285. USD/JPY  is at 119.90 and remains within the well known from the last weeks range between 119 and 121. The most profitable currencies are on track to hit new highs. The Australian dollar approached the peak from September at 0.7280. A breakthrough this level would lead to the highest levels since the end of August. The New Zealand dollar approached the peak from August at 0.6708. NZD’s rally after the bottom on 23 September at 0.6235 so far is amounted to 7%.
Fed caution led to gains on Wall Street and generally in risky assets. The data from Europe is not good and it became clear German exports collapsed in August, with the greatest pace since the global financial crisis. Today there are no major macroeconomic news that could move the market.

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