yellen-talk-to-the-hand-300x149This week the currency market may return to normal operation which is listening to what have to say major central banks and valuing on the basis of whether changes are needed in the relative strength of the world’s major currencies. It would be a big change comparing to last few weeks, which were marked by a new US president Donald Trump and his first decision.


Although there seemed to be emerging at the end of last week signal that Donald Trump was persuaded to Republicans plan of tax reforms should electrify the US dollar but it did not happen. But with greater conviction we can say that the USD has a chance to recover from the weakness persisting in January. Already this Wednesday we have FOMC meeting and it turns out that the dollar had to withdraw from the entire strengthens which was caused by previous decision of the Federal Reserve Bank – and more specifically the information contained in the so-called dot chart describing how strong monetary tightening want American decision-makers in this and subsequent years. Will it be enough to give strength to USD a simply a reminder that the Fed is close to achieving its objectives what orders to withdraw from the loose monetary policy?

Against the dollar acted Friday’s GDP data for the fourth quarter. The estimate of economic growth was quite disappointing. However, it was the first reading, so potentially quite far from what eventually will be announced in two months as a result achieved by the economy. In addition after “Trump Boom” which pushed up dollar since the announcement of the election results in the US to the end of the year was based on the vision of stimulating economic situation in future periods through looser fiscal policy as well as the vision of Fed more set to hike rates as a result of all this what can bring new presidency. So perhaps a signal from the monetary authority is needed to enliven the dollar.

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