The dollar passed back slightly compared to other major currencies, after Fed officials expressed concerns about global growth, prompting traders to overestimate the rate of increase in US interest rates.This year, the dollar has achieved great success thanks to the efforts of the Fed in the struggle for a sustainable economy and due to wage growth. The fourth rate hike this year is expected next month, and another two are forecast by June 2019. The recent comments by Richard Clarida, the new vice-chairman of the Fed, questioned the planned stages of tightening policy. Clarida warned of a slowdown in global growth, stating that "this is what will matter" for the prospects for the US economy.
President of the Federal Reserve Bank of Dallas, Robert Kaplan separately noted the slowdown in Europe and China. All of these comments may hint that the Fed intends to slow down the pace of monetary policy tightening, and force traders to doubt the strength of the dollar. Now it's worth waiting for the speech of the New York Fed President John Williams and sees if he will continue the theme begun by his colleagues. Not forgetting that the Fed has always remained dependent on data.For now, it can be said for sure that the dollar is in turmoil. The currency did not just take a pause, but rolled back, losing the opportunity to gain a foothold at the next mark and move up again. In such a position, it is difficult to predict the next course direction. The dollar is now like a tensioned spring, and in which direction it will shoot, primarily depends on the comments of the Fed.
