The dollar has lost ground during after that the Federal Reserve looks to add more effort to stimulate the recovery of the market. This is a move that could weigh on the returns of U.S. and, ultimately could put more pressure on the greenback.
Markets are generally tending to the fact that the Fed may commit to purchase at least $ 500 billion of U.S. treasury bonds with maturities of over five months, while some think that the U.S. central bank may eventually decide to buy less. There is uncertainty about the details of the movements of the Fed, but in the end everything would lead to lower yields, which should mean a drop in the dollar in the long term. The dollar meanwhile slipped 0.2 percent against a basket of currencies.
The euro rose a little and is held in a range between 1.4000 and 1.4050 U.S. dollars for most of the European session. The pound reached its maximum of nine months or so, after macroeconomic data was stronger than expected. This suggests that the Bank of England can no longer implement the incentives to the market.
Traders also said that liquidity has dried up after the start of the week, as can be seen even after the fact that some traders have indicated that their turnover for the last two days were the lowest in five years.
Meanwhile, the market expected the Fed to make an announcement in order to provide greater clarity on the issue of the dollar. The market hopes that the FOMC is going to break the inertia, in one way or another. Could this be a week on which to focus before the end of the year.
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