The dollar strengthened against the euro from 1.0720 on Tuesday afternoon to 1.0650 early this morning, and as we wrote: Today it will not be the outcome of the Fed's interest rate decision itself that will be interesting (hold), but what the central bank does says what is to come. What explanation does he provide for the situation in light of the unclear economic data? (On Wednesday afternoon, before the Fed's decision, we will also learn about the ADP employment report, which is also important.) Today is a public holiday in Europe, except for the British Stock Exchange, other exchanges are closed, but trading is smooth in electronic foreign exchange markets Interbank. Traffic should be low, which may lead to larger displacements.
On Monday, the forint appeared to have broken the uptrend line drawn below against the euro at around 391, although there has been no wave-like strengthening for the forint since then (the exchange rate only approached the 390 level, then moved back higher). Despite the strengthening of the dollar, the strength of the forint remained strong until Tuesday evening, and on Wednesday morning the exchange rate fluctuated around 391, then there was a wave of strengthening to 390.6. Accordingly, it now appears that the exchange rate is about to break the mentioned important level, although with illiquid trading, it is not worth stating this as a fact at the moment.
In addition to the strength of the dollar and the sideways movement of the forint, USD/Forint rates fell to around 366.5.
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