In the currency market has started to consolidate: the euro / dollar hovered below $ 1.34. On Friday quotes this cross were near the mark 1.334 dollars / euros. In the foreign exchange market has developed an ambiguous situation. As noted by President Kanundrum Capital, Brian Kelly, a statement the U.S. Federal Reserve suggests that soon we can expect increasing inflation. "In fact, Reserve reported that its concern: inflation is too low. And it means that it will improve. But, in my opinion, we are already seeing inflation in the market of cereals, especially wheat and maize. We see inflation on the stock exchanges of raw materials, we see inflation in China, and it is already beginning to overflow into the U.S. economy through imports. The Fed admits a big mistake, driving inflation expectations "- the expert believes. But the desire to control "push" the liquidity of the banking system in the real sector faces a lack of understanding of bankers, since the latter does not make sense to lend to the private sector, the dollar has deflated.
Inflation expectations have weakened U.S. currency. Meanwhile, however, record spreads on bonds of the peripheral countries to the German benchmark bond yield evidence of financial instability in Europe. Therefore, the euro can not be "defensive" currency from inflation in the U.S., although he showed growth at the beginning of the current trading five days. Meanwhile, the British pound a week goes on. On Friday, he was quoted at around U.S. $ 1.567 Prospects for further growth in the currency of Great Britain are questionable.
Thus, for the players is just the yen. However, bidders funky Bank of Japan intervention, yet does not reach it. At 9:00 GMT on September 24 yen was quoted at 85.14 yen to the dollar. And, most likely it will continue to become cheaper despite the growing worldwide risk. As a result, investors will sooner or later will come to an old and reliable U.S. dollar, namely the government and U.S. corporate bonds. Terms of the Federal Reserve is closed.
