"Report": US dollar hike can be temporary - ANALYTICS

Baku. 7 May. REPORT.AZ/ US dollar is strengthening against other major currencies in the global financial markets on the background of expectations that the US Federal Reserve System (Fed) will increase its discount rate in several stages this year.

Analytical Group of Report informs, Euro and British pound have fallen to the minimum of 5 months, while Japanese yen has dropped to the minimum 4 months.

At the stock exchanges, the gold, which is linked to the US dollar rate, has lost its minimal value over the last 3 months.

Raising American currency can be explained by the fact that President Donald Trump is closer to business than the politics. However, given the global economic development of the world, this is not the only fact that raises US dollar. The question is, in general, the stagnation in the economies of Europe and Japan and the saturation of capital markets. This tendency will be observed in the US, and the US Dollar exchange rate is not an exception. If this happens, the exchange rate of other currencies against US dollar may change horizontally in the single corridor. If we look at the currency exchange rates with the technical analysis, the USD / EUR ratio in the following weeks can be 1.17, the USD / GBP ratio - 1.33, the JPY / USD - 112-113, and the gold will fall to $ 1 284.

If US dollar fells sharply, the USD / EUR ratio can make 1.39, the USD / GBP ratio - 1.56-1.57, the JPY / USD - 92, and gold price can rise to $ 1 475.