What is the dollar waiting for this week? The market is betting on growth

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On Tuesday, the dollar returned to growth against a basket of major currencies, the Canadian dollar continues to receive support from rising oil prices after the US decision to tighten restrictions on exports of Iranian oil from next month. The data showed that home sales in the secondary housing market in the US declined in March more than expected due to limited supply, and data on new home sales will be published later. Of course, they can give some guidance on the state of the US economy, but a clearer picture should appear on Friday after the publication of the GDP report.

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Investors should expect an increase in volatility in the coming days, when traders will return to work after the holidays and if US GDP will grow. This week may be convincing evidence that a reversal towards the "dovish policy" from leading central banks, and in particular from the Fed, was enough to change the dynamics of global growth. As for the dollar, there is currently no reason for a serious fall. The recent strengthening of the yen against the dollar will be temporary, and as long as central banks around the world refrain from normalizing politics by raising interest rates, the dollar will feel more than confident. The current "dovish" tone of the regulators supports risky assets, and this support will continue until major Central banks take action to normalize monetary policy.

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The material has been provided by InstaForex Company - www.instaforex.com

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