Wednesday 7 September 2016

Small currencies rose against the Big Three

The lack of clarity in relation to the US dollar has left the currency market in domination of small currencies, which are strengthening against the "Big Three" against the background of extreme carelessness of investors in the asset markets, keen on hunting for higher incomes.
On Tuesday the States have returned to work after Labor Day, officially completing the summer holidays on the markets. Together with the autumn in the global asset markets, as a rule, return volatility, in fact, historically, the worst misfortune is happening in September and October. This is an important fact, since the last few weeks on foreign exchange markets reigns criminal carelessness and investors stubbornly refuse to notice the impending danger, considering that central banks will take care of everything, so they can easily search for the most profitable ways to invest.
Only this way could be explained, for example, the strengthening of AUD/USD after yesterday's meeting of the Reserve Bank of Australia, which is the last for Glenn Stevens, who this month leaves the post of chairman and delegates it to Philip Lowe. In the accompanying statement, the RBA noted low inflation and suggested that in the near future the price situation will not change, because the low salaries do not contribute to inflationary pressures.


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