The dollar's performance varied at the beginning of the week against the major currencies in the markets after the release of US jobs data.
Today, the financial markets are eyeing the Non-farm payroll report issued from the US Bureau of Labor Statistics in the wake of the Fed’s intention to tighten its monetary policy. The Fed will likely hike its rate for the first time since late 2018, next March when it ends the massive asset purchase program of $120 billion a month.
Global stocks rose for the fourth consecutive day on Friday in light of expectations for the growth of the world economy, while the performance of the US dollar is the worst for five weeks as the markets watched US inflation data.
The US dollar succeeded in stabilizing higher than an important support at the end of the third quarter of 2017, as the dollar index rose from 92.40 after it continued its decline since the end of the first quarter of the year, reaching the lowest level since January 2015 at 90.97.
On the economic calendar today, the most prominent headline was Janet Yellen, FED Governor speech, entitled "Inflation, Uncertainty and Monetary Policy", warning FOMC from moving too gradually and confirmed that the Fed able to meet the inflation target of 2%, and not considering changes in the target, noting that it is the uncertainty that strengthens the policy of gradually rate hike, which she supports despite the weakness of inflation.
The remarks by Janet Yellen, Federal Reserve Governor, were as follows:
US Federal Reserve member Charles Evans made many statements, the most prominent of which were:
The weekend saw flaming events as elections were held in New Zealand and Germany, New Zealand's ruling National Party has won the largest number of votes, reaching 46%, while the opposition Labor Party has won 35.8%. The next few days will witness talks in order to form a coalition, to form the new government pending the announcement of the results officially on October 7.
The markets absorbed the Fed's decisions yesterday, US stocks started to fall from historical highs and the US dollar saw some slight declines after rising overnight after the Federal Reserve kept interest rates unchanged at 1.25% and left the door open for a third raise this year.
The markets were calm today, before the US Federal Reserve announcing the interest rate decision. The economic calendar was not full of major economic events during the day, so the markets were looking to see what the Fed will release tonight
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