The market has stopped and it is not clear whether everyone was stunned by how quickly the dollar has strengthened in recent days or they decided to take a short break. Although the fact is rather that they simply could not find any reasons for purchases or sales because yesterday was completely empty from the point of view of any information that could help in making a decision. No statistics were published and all hope was only for the speech of Jerome Powell, who spoke on the risks to the American financial system. However, the head of the Federal Reserve did not say anything new. For several months in a row, all the representatives of the Federal Reserve System deal only with what they say about the rather unfortunate consequences for the economy that the trade conflict between the United States and China entails. However, they constantly indicate that all these risks are only in the future and can still be avoided.
Moreover, Mr. Powell did not say anything about the refinancing rate and the possibility of reducing it. Although his colleagues in the Federal Commission on operations on the open market deal only with those who claim that they see no reason for such steps. British politicians also did not bring anything new, deciding to wait with yet another loud statements regarding Brexit. Hence, investors had to sit and wait for the weather by the sea as they see no reason for such steps. British politicians also did not bring anything new, deciding to wait with yet another loud statements regarding Brexit. Hence, investors had to sit and wait for the weather by the sea.
Today, the situation is not much better since only data on home sales in the secondary market of the United States, which can grow by 2.6%, is released from macroeconomic statistics. The data is not that important, so there will be no special effect. Moreover, the lull in the market is largely due to the upcoming publication of the text of the minutes of the meeting of the Federal Commission on Open Market Operations, in which they hope to find answers to questions regarding further actions by the regulator, especially in terms of the refinancing rate. For the reason that the market participants themselves are not particularly tuned to sudden movements. It is better to be safe and remain cautious until there is any specificity.
The euro/dollar currency pair, similarly to a fellow, showed a movement standing in one place, where a bearish interest remains in the market after all. Probably, it suggests a further decline towards 1.1135, which was the local minimum on May 3.
The pound/dollar currency pair has dramatically slowed the movement for the last trading day, remaining all the time in the same place, to say the least. It is likely that against the general background. The downward movement will continue, lowering us towards 1.2665.
