The exchange rate of the dollar depends on the behavior of the euro, according to analysts.
Evgeny Mironyuk, a stock market expert at BCS World of Investments, in an interview with the media, spoke about the “pitfalls” that the dollar will face before the end of May.
Recall that recently the dollar has already reached record highs over the past twenty years, updating the tops against other currencies. While some experts believe that the peak of inflation has already passed, others are convinced that everything is not over yet.
Thus, in April, the inflation rate 39;inflation was 0.3%, and in March 1.2%, but prices continue to rise.
Mironyuk told “Prime” that according to the statement of Fed chief (analogous to the Central Bank of the United States) Jerome Powell, rates will increase by 0.5% for each of the federal funds, which results in a decrease in the rate differential with developing country economies and an increase against developed economies.
The Fed chief said he would not hesitate to support an increase in rate above the “neutral” level.
The United States also points to the increased appeal of the dollar for so-called carry rates, when an investor borrows in one currency at a lower rate and invests in another at a higher rate.
An American expert is convinced that the fall of the euro is responsible for the weakness of the dollar.
As Mironyuk specifies, on May 12, the euro hit 1.05 to the dollar, after which there was a “one-digit breakdown”; – the odds were 1.0357, which means a fall of the euro by 0.3%.
It is very likely that the euro will continue to fall in the short term.
According to Mironyuk, before the end of the month, a strong downward movement in the EUR/USD pair and the growth of the The dollar index is weak. Weak U.S. retail and durable goods sales, as well as first-quarter GDP numbers, could work in favor of the dollar.
Analyst believes targets are ” bullish”( securities traders who earn on the growth of assets in price) will be 1.057 and 1.062 euros per 1 dollar.
If the fall of the euro continues, then the rate exchange rate of the dollar against the euro will be around 1.034-1.055 euros for one US currency unit. As for the currency index, the dollar will not exceed the range of 103.4 to 105 points.
Earlier, Topnews wrote that the expert called the value real dollar.
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