This week’s events are said to be crucial for the currency market. The U.S Dollar is likely to react to the Federal Reserve’s upcoming announcement in regards to monetary policies. But in which direction it will go, nobody really knows. Much of it will depend on what the Feds decide will be best for the country’s welfare. When predicting the future of the greenback we can say without a doubt that not one particular event will dominate the market’s scenario. We’re also waiting to hear what the FOMC will say on November 3rd when officials sit down to discuss the state of the U.S economy. Experts believe they will opt for yet another stimulus.And just this week we were thrown another curve ball; the Federal Reserve Bank of New York released figures that represented the sentiment of many banks, mainly of those that had purchased treasuries. They believe that if there’s another stimulus, it will come at a price of one trillion dollars. We have to wonder whether they said this in order to prevent high volatility. What will happen? We’ll have to wait.
We did see the Euro remain unchanged versus the dollar as the week came to a close. But the upcoming events assure us there will be a remarkable increase in volatility and many changes in trends. It’s best that those who want to trade the EUR/USD remain vigilant of other financial news soon to be announced out of the Eurozone.
David Sumner is a freelance writer with a specialization in reporting on the world of finance. David holds a B.A. from the University of Maryland. Currently David is based in the U.S. but spends a good portion of the year traveling throughout Europe and Asia.
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