Kathy Lien explains how the Fed’s policy affects the greenback in currency trading
One of the things that forex traders watch for is central bank policy statements. And this includes the Federal Reserve. The U.S. dollar is affected in forex trading by what the Fed decides, as well as what other central banks decide to do. GFT’s Kathy Lien explains in FX360 how the Fed fits in with the greenback in currency trading:
For the dollar this is important because traders will be positioning based upon how the Fed fits into the global picture of monetary easing and tightening. …
Either way, as long as they do not grow more dovish, the monetary policy stance of Australia’s central bank will be in sharp contrast with that of the Federal Reserve. Recent comments from the Fed suggest that they have all intention to keep Quantitative Easing in place for as long as they can. As a result, hawkish comments from the RBA could drive the U.S. dollar to fresh 13 month lows against the Aussie.
0 comments:
Post a Comment