Search the Community

When it comes to creating a forecast, you have to take into account the percentage of statements in central bank monetary policy. These statements define the tone of the long-term currencies with the fluctuations of the prices given per day and the adjustments of the volatility according to the main trend creates a new risk. That being said, I’ll now review the monetary policy statement of the largest economy and tell you how it will affect the foreign exchange market. US Dollars The US Federal Reserve has continued to influence the US dollar interest rate since 2018. The interest rate has been raised four times recently. It is helpful to drive the dollars to new highs against a basket of currencies this year. There was some volatility in the dollar. The interest rate has not been as steady as expected. Performance over the last ten years has reached a multi-year high of 3.25%. It contributed to the dollar's rise, but this return was reduced to 2.75%. Last year, the Fed raised rates with a healthy economy. The central bank hinted in the latest monetary policy statement that will pause another rate hike in 2019. It will not do so until economic data confirm it. Current pricing trends do not increase the rates of the Federal Reserve. If this assessment is true, trading will continue at 2.75% benchmark. The US dollar-dominated forex currency pairs. But it is important that you learn the basics of forex before trying your luck. New Zealand Dollar Last November's monetary policy statement, the Reserve Bank of New Zealand maintained its official castrate rate at a constant rate of 1.75%. The RBNZ governor, Orr, said the central bank intended to maintain it throughout this year. OCR will be an expansionary level for a considerable period of time, will help maximize sustainable employment and maintain low and stable inflation. There will be risks associated with growth and protection against inflation. The timing and direction of the movement will depend on the data. Major consumers remain below 2% at mid-term. The need to continue a supportive monetary policy. The political meeting, oil prices plunged US Treasury yields. They fell with the stock prices. The New Zealand GDP was below expectations. Still, it's a wearable market for Forex traders. Several regulated brokers offer excellent packages in New Zealand dollars. Find a good pair and start trading. But you must make sure that you are investing with the right trader. To do your research, visit a Forex Broker review to compare forex brokers. Australian dollar The Reserve Bank of Australia maintained its official rate at 1.5%. It's a historic low. The low level of interest continues to support the Australian economy. The continuation of the process reduces unemployment and the goal of returning inflation is expected. The process is slow, but they take all the available information. The jury that judged this decision did not change position. The meeting aimed for sustainable growth and achieved the corresponding inflation target. Inflation has remained stable and weak. Initiation to the CPI was 1.9, but in fundamental terms, it rose to 1.75%. We do not know how that will change in the future, but it will remain positive in 2019. The RBA is a little optimistic about rising inflation. Consumer spending and the weak housing sector will limit the interest rate. If RBA does not move, it will be a rate cut. Japanese Yen Japanese policymakers disagree on the feasibility of allowing bond yields. It will go to the goal of zero percent. This will reflect division within the board on how to deal with the growing difficulties of prolonged easing. Decision makers have predicted a collapse and we are seeing the results now. Efforts are being made to make the Japanese yen attractive, but USD / JPY is not the right pair it was before. So, this was some information regarding how will the world's largest economies affect the Forex market. Do you find it helpful?