Sunday, 21 August 2016

USD slightly elevated after Williams’s statement

The US dollar marked slight increase at the end of the week  and bounced from the 8-week low against the euro and Swiss franc. The main reason for this is the statement of the president of the San Francisco Fed - John Williams. According to him, if the central bank keep the interest rates unchanged for too long this could have adverse consequences for the US economy. Therefore, the potential increase in interest rates in September can not be excluded.
On Friday, futures on the federal funds recorded a 53.5 percent chance the Fed to raise interest rates by year end. 

The US dollar index rose on Friday by 0.42 percent to 94,553 points, but finished on a weekly basis with a fall of more than one percent.

The euro slid 0.3 percent to 1.1318, after earlier reaching 8-week high at 1.1368. The dollar rose half a percent against the Swiss franc to 0.9589 after earlier marking a low at 0.9532.

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