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Today in quiet trading, the dollar fell against the world's currencies as reduced expectations the Federal Reserve raising interest rates before the end of the year continue to put pressure on the US currency. Trading volumes are expected to remain low today as US markets are closed in observance of Columbus Day.
Minutes of the Fed's September meeting released on Thursday showed that the majority of members of the leadership is inclined to raise rates this year, while the financial market turmoil "is not significantly affected" the prospects for the US economy.
However, the minutes also noted that the recent economic and financial developments in the world, is likely to increase the risk for the US economy.
Protocols reinforced expectations that US interest rates are likely to remain at current levels until 2016.
Fed Vice Chairman Stanley Fischer said Sunday that the US central bank chose a cautious approach to the issue of raising interest rates, given the events abroad, as well as the impact of higher interest rates in emerging markets and other countries.
Many economists believe that the Fed will raise interest rates in September. However, economic instability outside the United States has forced the central bank to refrain from raising. Since Fed officials have stated that it is still planning to raise rates before the end of the year. The prospect of continued low interest rates for a long time put pressure on the dollar, as higher borrowing costs will make the US currency more attractive for investors seeking yield.
The president of the Federal Reserve Bank of Atlanta Dennis Lockhart on Monday reiterated that he expects the US central bank will raise short-term interest rates this year.
However, he also warned that since the coming economic and financial news to influence Fed decisions taken by the leadership, the situation may change.
Little support for the euro had earlier statement by the representative of the ECB Ker. He noted that it is too early to take a decision to expand QE. In focus were also comments of the International Monetary Fund. Recall, the IMF stated that the forecast deterioration in opportunities for economic growth in the world economy in the medium term. "The global economic recovery continues, but growth remains modest and uneven. Global risks of economic growth increased despite the efforts of developed countries to overcome the crisis, as many developing economies are experiencing tighter financing conditions, reduced capital inflows and currency pressure due to the high currency indebtedness of the private sector, "- said the IMF.
Investors also await the publication of the German ZEW index for October, which is an early indicator of economic and business expectations. This index is likely to show that the trust company was undermined by concerns around China, as well as the scandal with Volkswagen.
The pound strengthened against the dollar, returning almost all the positions lost on Friday. Investors are waiting for the publication of data on inflation in Britain. It is expected that consumer prices in September remained at zero for the second month in a row. Extremely low commodity prices in the international markets and the strengthening of the British pound, which leads to a reduction in price of imported goods, since the beginning of the year to keep inflation at a level close to zero. According to the latest forecasts of the Bank of England, consumer price inflation will begin only next spring.
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