Market overview (2016.03.29)

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Market overview (2016.03.29)

Source: ACFX Forex Broker (Review and Forex Rebates Up to 85%)

 

The US Dollar is trading higher this morning as traders await a speech by Federal Reserve Chairwoman later this afternoon. As always, Janet Yellen’s presentation will be closely scrutinized by the market participants, who will look for clues regarding the Fed’s future monetary policy.

On the March 16, the FOMC delivered a statement, which gave a dovish message to the markets as it reduced the projected amount of interest rate increases for 2016. This action will likely lead to a lower dollar and expected to boost the US economy.

The shift towards a policy that seeks to devalue the US currency was highlighted by FOMC Chairwoman’s message to the worlds gathered press that US Dollar strength transitory. Although this term was used this was the first time it was applied in regards to the Dollar’s value.

The main goals of the policymakers are the price stability and a healthy US job market. Nevertheless, a weaker US Dollar policy is welcomed by the global markets as this could lead to price stability and less deflation there too. Furthermore, the policy of deliberately weakening the US Dollar could act as a spur for growth both within the USA and across the globe.

 

Below are today’s major news releases

 

TimeCurrency affectedImportanceReleaseFrequencyForecastPrior
1:30 PMCADHighRMPIMonthly-0.8%-0.4%
3:00 PMUSDHighCB Consumer ConfidenceMonthly93.992.2
5:20 PMUSDHighFed Chair Yellen to speak
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