During last week, the pair was going up, coming off slowly from the support line of the wide uptrend channel since last December. If we look to the pair movement through this channel, we can notice that movement in May was indicative (two previous movements took almost the same time) and fast movement from its upper boundary to the lower. However, the probability to break the support of the uptrend channel was quite big.
At least Federal Reserve members were helping it a lot, showing, one after another, that possibility and necessity of a soon policy tightening exists. Continue reading
Last week the Federal Reserve members performed active campaign for changing of market expectations about interest rates. Fed Reserve representatives referred that market volatility calmed down in comparison with the situation in the beginning of the year, while more economic indicators came to the normal levels. Moreover, April FOMC minutes have reflected either that the Committee is seriously considering the rates increase in June. We would like to mention that previous data, possessed by the Committee, were much worse than those noticed during last weeks. Simultaneously, Federal Reserve is observing foreign financial markets cautiously watching out for volatility.