USD Over last week, USD fell to new minimums. The decline was caused by cancellation of debts by American banks as well as the approaching meeting of the Federal Committee of the United States, which many analysts expect to reduce the interest rate by 0.5% -0.75%. Recession in the American economy led to a decline of USD value to the minimum. Particularly strong dollar has been falling over the past two weeks, when expectations of the recession began to be confirmed by fundamental data. As a result, some pairs updated their absolute maximums and deviated from balance. Fundamental analysis of the American economy shows that the interest rate in the United States could be reduced to 1%, which will lead to a decline of USD and the growth of industrial production. Among the negative factors there will be hyperinflation and raising interest rates to double quantities. The growth of inflation in the United States will be accompanied by rising interest rates leading to the strengthening of the dollar and slow growth. Among the statistics it is worth to note Friday’s issue of the consumer price index - Consumer Price Index, which in February was 0% vs 0.4% (month earlier). Reducing the index may mean that the Fed still has the possibility of reducing the interest rate, which is 3% at present. On Monday an issue about American economy will be published, which is worth to pay attention to capital inflows by data of the Treasury of the United States as well as data about industrial production. An increase of foreign capital will mean that investors believe in the imminent completion of a recession in the American economy and try to invest money in securities until they are at their minimum points, and growth in industrial production may mean “bottom” of reducing the American economy.

the source of info: PoltekFX Analytics