Greenback follows Fed's peaceful message
On Thursday, market participants gave the greenback a wider berth, following the Fed’s quite dovish comments. So demand for the number one world asset is being dampened.
Not so long ago the dollar index stuck to 94.931, gradually climbing up from its previous high of 94.578 reached just two weeks ago.
Financial experts stress the fact that the Fed’s quite dovish hint along with month-end adjustment should be blamed for this continued greenback selling.
Meanwhile, the EU’s key currency bounced back in the striking distance of its year’s climax of 1.1377. Last, the currency traded around $1.1321, setting to report 4% quarterly revenues.
Now investors wonder whether the euro could broaden its surge beyond that rise ensured by the ECB, which is supposed to maintain its current easy monetary policy with negative interest rates. It feels like the EU’s currency is making a triple top. There’s rather a low probability of a surge above $1.14. Traders definitely require a solid reason to bring the euro above those levels.