years on the market

Comment on the situation on a market 21.03.14

Dollar will continue to strengthen

Federal Reserve decided to continue reducing of incentives and Janet Yellen told about prospects for raising the key interest in next year to a level of 1.0%. This has changed the balance of power on the foreign exchange market and not only on him. Apparently, market finally began to understand that temporary weakness of the dollar is about to end and his incremental gain is near at hand.

The weakest link in this situation is the single currency, and Yen. Single currency will remain under pressure, because economic situation in Eurozone remains quite unstable and one can hardly expect a tightening of monetary policy from ECB in future. And from the Bank of Japan should expect possibility of increasing the incentives, that will adversely affect the Japanese yen.

Given the mood of the market can be expected, that EURUSD pair continue to decline to 1.3700, while USDJPY grows up to 102.70. ​

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