June 8-12, 2020. The dollar is expected to strengthen

2020-06-07

The US dollar is likely to strengthen if the Fed does not make policy adjustments.
The Fed will meet next week. This will determine the dynamics of the dollar in the near future.
It will be difficult for the head of the department Jerome Powell to offer new incentive tools – the interest rate is near zero, the QE program has practically no limit. In addition, the US economy has already seen the first signs of recovery, enabling the Fed to take a wait and see attitude.
The dollar is able to strengthen if the Fed does not come up with anything new. A trend can be indicated from the beginning of the week. The absence of depreciation of major currencies will mean that insiders are counting on new stock market incentives from FOMC.
The general fundamental background of the next week is also developing “successfully” for the US dollar, due to the “ghost of hard Brexit”, problems in reaching agreements between the countries included in OPEC. The situation for the growth of the dollar is favorable.