Home Business News Strong volatility in the forex market

Strong volatility in the forex market

by LLB Finance Reporter
28th Jul 23 10:53 am

The forex market recorded strong volatility during the last few days as traders reacted to the interest rate decisions of the US, European and Japanese central banks.

The market also reacted to stronger-than-expected US economic data yesterday showing that the economy could be more resilient than previously thought and could push the Federal Reserve to maintain a certain level of tightness in their monetary policy in order to achieve their inflation goal.

Wael Makarem, Senior Market Strategist – MENA at Exness said, “The successive decisions of the Fed and the ECB and the economic data could support the US dollar to a certain extent while the ECB seemed to adopt a less aggressive tone as the central bank could be open to a pause in interest rate hikes in the future if necessary.

“At the same time, the Japanese yen could find some support over the medium term as the Bank of Japan could slowly move away from ultra-loose monetary policy as it tries to balance growth and inflation.”

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