The dollar exchange rate depends on the behavior of the euro, analysts say.
Evgeny Mironyuk, an expert on the stock market of BCS World of Investments, in an interview with the media mentioned the pitfalls that the dollar will have to face before the end of May.
Recall that recently the dollar has already reached record levels over the past twenty years, updating the highs to other currencies. If some experts believe that the peak of inflation has already been passed, others are sure that everything is not over yet.
So, in April the inflation rate was 0.3%, and in March 1.2%, but prices are still rising.
Mironyuk told “Prime” that according to the statement of the head of the Federal Reserve (an analogue of the Central Bank in the USA) According to Jerome Powell, rates will rise by 0.5% for each of the federal funds, which will reduce the difference in rates with the economies of developing countries and increase compared to developed ones.
The head of the Fed said that he would not hesitate to support raising the rate above the “neutral” level.
Also in the US, they point to the increased attractiveness of the dollar for the so-called carry trade rates, when an investor borrows in one currency at a lower rate and invests in another at a higher rate.
The American expert is sure that the fall of the euro is to blame for the weakness of the dollar.
As Mironyuk clarifies, on May 12, the euro reached 1.05 for $ 1, after which there was a breakdown on the figure of ” – the quote was 1.0357, which means the euro fell by 0.3%.
There is a high probability that the euro will continue to fall in the near future.
According to Mironyuk, until the end of the month, the probability of a strong movement of the EUR/USD pair down and the growth of the dollar index is low. Weak sales of retail goods and durable goods in the United States, as well as GDP figures in the first quarter, may play into the hands of the dollar.
The analyst believes that the targets of “bulls ” (securities traders who earn on the growth of assets in price) will be 1,057 and 1,062 euros per 1 dollar.
If the euro continues to fall, then the dollar-euro exchange rate will be about 1,034-1,055 euros per American monetary unit. As for the currency index, the dollar will not exceed the frame of 103.4-105 points.
Earlier, Topnews wrote that the expert called the real value of the dollar.