According to recent report, the value of dollar stayed steady in the Asian market. The continuous holidays to the market have calm down the heavy market actions that has taken place in the market last week. The heavy monetary action was driven by nothing by the monetary policies of both Japan and United states. The trading will be subdued by so many participants as the Christmas holidays are following this week. Also the Japan has public holiday this Wednesday. Hence the Asian market is expected to have a steady dollar value and also the yen has recovered from the short lived fall.
Barclays’ client notes
Barclays has written a client note. In the client note, it was mentioned that the hike in the rate of Fed has helped the market to lower the risk of premia and it has underscored the strongest trend of US dollars. The liquidity is expected to decline in next two weeks. Since the liquidity is about to be declined, the movement of FX may also get disconnected from the fundamentals in the next two weeks. The database of Barclays shows that the euro/dollar trading will be reduced about 40 percentages on an average during the period of holidays.
The euro is very steady from last Friday. In the North American levels it has a value of $1.0866. The greenback that has a basket of 6 currencies was also very steady. The value was mentioned as 98.713. On Thursday, the index was market as 99.294, said the sources. Once the Fed has announced the long expected hike in the rates, the Bank of Japan also has initiated the monthly program of asset purchasing. This program is expected to have a good impact on the value of yen, said the marketers and economists.
Speculators have splashed their bullish bets after the Fed announcement
Once the Fed has announced that the interest rates will be increased, the speculators have started splashing their bullish bets, especially on the US dollars. This happened in the third straight week through the December 15, said the sources. This was a data that was released by the Commodities Futures Trading Commission on this Friday. The value of the US dollars has started falling once the Fed has announced the hike in the rates. It was an expected event, said the marketers. The Fed has planned this and has executed it well and the fall of US dollar value is a planned event.
Thus eventually it is true that the US zone has experienced a very less growth at the end of the year. But the marketers says that it is really too early to think that this giant is facing a big trouble now. By contrast, the Europe zone has experienced a great growth at the end of the year. The economic conditions may change at any time and this is one such situation that is quite an apt example for the above mentioned phenomena. For more news on finance and latest updates on share market, please follow us at https://twitter.com/adam01barry