The Dollar index failed to break above the crucial resistance level of 93 and came down sharply last week. The Euro, on the other hand, has held well above its support at 1.1750 and has risen back sharply above 1.18. This keeps the broader sideways range in the currency market intact. The band of 89.50-93.50 on the Dollar index and 1.17-1.2350 on the Euro are in the range that has been in place for a long time. Within this range, the Euro can move up and the Dollar index can fall in the coming weeks.

Fed policy outcome

The US Federal Reserve’s policy meeting last week turned out to be a non-event. The Fed left the rates and the asset purchases unchanged at 0 per cent-0.25 per cent and $120 billion per month respectively. The central bank also did not give any hint on when it would start the tapering of its stimulus. With no surprise from the Fed, the market was left with no impact. The market will now have to wait for the Economic…

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