The USD updated its 5-week highs. Overview for 29.09.2021
EURUSD continues falling; Powell supported the “greenback”.
The major currency pair is still falling on Wednesday. The current quote for the instrument is 1.1658.
The American currency was significantly supported yesterday by the US Fed Chairman Jerome Powell. During his speech, Powell said that the regulator was really planning to reduce or even close the stimulus program in the future. These words revived discussions of the monetary policy tightening in the USA and the “greenback” immediately responded with a growth.
At the same time, the US 10-year bond yield also continued improving, thus giving the USD an additional boost.
The FED is planning to reduce the QE program as early as November and that’s good news for the “greenback”.
Talks about a maximum allowable limit for the US national debt are quite topical right now but there are a lot of obstacles here, as always. Earlier, the Republicans blocked the government financing bill, the one that was approved by the House of Representatives. Now, it’s important to agree on the key aspects of government financing by October 1st. Nuances can be discussed later.
The national debt limit has to be agreed on until mid-October, so there’s plenty of time for that.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
The material presented and the information contained herein is intended for our customers, and is for information purposes only and in no way should be considered as the provision of investment advice for the purposes of Investment Firms Law L. 87(I)/2017 of the Republic of Cyprus or any other form of personal advice or recommendation, which relates to certain types of transactions with certain types of financial instruments.