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"2021-05-20

The US dollar recovered slightly after the support of the Fed

In the minutes of the May Fed meeting, several politicians said that a discussion of a slowdown in asset purchases would be appropriate at a time when the US economic recovery continues to gain momentum. The announcement surprised investors and traders given that Fed Chairman Jerome Powell said just after last month's meeting that it was not time to start discussing any changes in financial policy. The protocol contained language aimed at starting discussions on the transition to tightening policies earlier than expected. If the next employment data, due out on June 3, is strong, then the markets will begin to prepare for the fact that the Fed may make a more specific mention of the curtailment at its next June meeting.

After small fluctuations, the euro rate continued to move sideways and now occupies a price position of USD 1.2182 per euro.

The British pound sterling is down slightly and is now trading at $ 1.4113. The Swiss franc slipped to 0.90348 from 0.8973, leaving its highest level in three months.

Also, the US dollar rose against the Japanese yen, again returning to the price of 109.15 yen, leaving the weekly low, where it stayed earlier.

The US dollar has been weakening over the past several weeks, as senior Fed officials have repeatedly said they are not yet ready to discuss cuts in stimulus and tightening fiscal policy, as the observed spikes in inflation are temporary.

Also, the Fed minutes slightly increased the yield on US Treasury bonds - the yield on 10-year bonds increased to 1.671% against 1.65%, which was before the publication of the protocol. Still, yields are still below their peak in March, partly due to doubts about how tough the Fed might take in lifting stimulus.

“Closer to the summer, the United States will have financial problems, and it is not known how much budget spending will become. It will become difficult for the Fed to take any steps without more certainty about fiscal policy», - said Minori Uchida, chief currency analyst at MUFG Bank. “I think the US dollar will rise in the near future, but I doubt it will last long», - she added.

The price per ounce of gold continues to show growth, now $ 1,875 is offered per ounce.

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