Home Business News Central bank meetings make for a busy week for the forex market

Central bank meetings make for a busy week for the forex market

22nd Sep 23 4:01 pm

The dollar continued to hover near this year’s high, maintaining a strong position against most major currencies, with the dollar index staying above a value of 105 after a busy week.

Traders monitored several major central bank meetings during the second half of the week. The FOMC meeting in particular was highly anticipated and had a significant impact on the financial markets.

The Federal Reserve’s hawkish stance pushed both the dollar and yields higher as it indicated that interest rates might remain high for longer while another rate hike could remain on the table this year. At the same time, economic data continued to support the narrative of a resilient economy and a soft landing.

The Euro experienced a volatile week but remained under pressure in reaction to the softer stance of the ECB and the concerns about the region’s economy.

On Thursday, the Bank of England left its interest rates unchanged, pausing its long and uninterrupted Apple takes a bite of the metaverse as markets are still troubled by inflation and rate hike questions data showed more favorable figures. The latter and the central bank’s decision have knocked the British pound down after a short period of stability at the beginning of the week.

Markets also witnessed the Swiss National Bank halting its interest rate hikes due to its concerns about demand and economic growth.

On Friday, the Bank of Japan maintained its negative interest rates, keeping its loose monetary policy in place. The decision came along expectations and the differential in interest rates with other major currencies could leave the yen vulnerable to additional losses, raising risks of an intervention from the Japanese central bank.

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