Historically, the Fed role consists in determining among others the US interest rate. The impact on US dollar is fundamental.
First, fixing the US interest rate enables to control inflation as consumers prefer to postpone their spending and keep their cash.
Therefore, US dollar will appreciate. The reverse also works.
Then, when consumers keep their cash in the bank, it lowers the companies profit so that the market price is falling which also lead to US dollar raise
To summarize, US dollar should the king in actual context but it keeps falling. What is the matter?
First, fixing the US interest rate enables to control inflation as consumers prefer to postpone their spending and keep their cash.
Therefore, US dollar will appreciate. The reverse also works.
Then, when consumers keep their cash in the bank, it lowers the companies profit so that the market price is falling which also lead to US dollar raise
To summarize, US dollar should the king in actual context but it keeps falling. What is the matter?
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Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.