The USD with small growth before Fed meeting minutes. The document is awaited with interest, as it may shed more light on the plans of central bankers at the moment, which will begin to increase interest rates. At the same time the demand for the JPY as a haven asset increased after the International Monetary Fund shrank its forecast for global economic growth. The eyes of market participants in today are focused on the meeting minutes of the Federal Reserve of the United States, which was held on 16th to 17th September. The document will become clear whether central bankers discussed the question of the moment will start to increase interest rates.
The timing of the rise in interest rates is very important for the market because it will cause a major restructuring of the portfolios of investors and increase the appetite for the USD. The last increase in the base rate was in 2006. The next meeting of the Fed will be held on 28th-29th October. She is expected to be fully terminated program to repurchase assets. At the same time the likelihood the central bank to increase interest rates to 0.5% by the end of July 2015 is estimated at 45%.
The analysts also warn that interest rates in USA will be promoted very rapidly once the process starts, and the end of next year as they are at around 1.5-2%. The JPY gained a foothold yesterday after the International Monetary Fund cut its forecast for global economic growth and led many investors to shift their focus back to safer assets. The world economy will expand by 3.8% next year, according to the organization.
This is a decrease of 0.2% compared to the forecast of July In the euro area, growth in this period will be 1.3% versus 1.5% previously announced, while in Japan the forecast was revised to increase the economy by 0.8% compared to 1.1%. The only leading economy registered an improvement in the expectations of economists from the IMF is that of the United States. The American economy will expand by 3.1%, from an estimated 3% in July.
The market adopted with negativity and the IMF report yesterday witnessed robust sales of stock markets. Of the situation won asset havens such as the JPY, CHF and gold. One EUR is exchanged for 1.2645 against the USD today. The pair GBP/USD is moving around 1.6060, having earlier reached a low at 1.6040. At the same time the exchange rate was 108.15 JPY.