Dollar Falls Slightly as Interest Rate Speculations Grow

The greenback slid against a number of currencies after the Federal Reserve dropped its expectations to increase the interest rates this year, as it was previously assumed, considering the improving economic situation of the United States. A report today may indicate that consumer prices fell the most since 1950 in the previous month, and if it is confirmed it can also weigh significant on the dollar exchange rates. The previous expectations of rate increases for December were precipitated, as the economic conditions in the United States as in other parts of the world are still far from suggesting it.

Economists refer the expectation for rate increases to be unreal, since the United States are still facing a present deflation. It is likely that when conditions improve around the world, a systematic global central banks will follow, but it is hard to count on this long term factors when trading currencies, considering that a lot of current events are moving most of the main pairs, making it hard to forecast the outcome for the U.S. dollar for the future months.

EUR/USD traded at 1.3838 at 12:56 GMT remaining rather stable. USD/JPY traded at 96.25 falling from 96.65.

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