Experts: buy a dollar in May for profit

According to analysts for many years, the peak of the growth of the American currency usually falls on May. This is backed by the data collected over 10 years. In the last month of spring, the US dollar appreciated 8 times, experts emphasized.

keV2vsNzXTBYnN3YVRm-m7m41gxH7UkjE4hxta01

At present, analysts note that the dollar against a basket of six world currencies, as the main US trading partners, is growing for three months in a row. Experts believe that the "bulls" in the US dollar can be expected to rise in the fourth month that is in May. According to a study by specialists from JPMorgan Chase, the largest bank, the US dollar index rose at least eight times in May over the past decade. For the American currency this is the strongest month of the year, as emphasized by analysts.

Last week, the US dollar index updated the annual maximum and reached a record of 97.458 points. The coming month is also the strongest for the "American" against the euro. Over ten years, the US currency strengthened in May against the European currency by an average of 1.8%. In the last month of spring, the market volatility of the EUR / USD rate rises as a rule.

In the first trading day of May, the US currency marked a dizzying rally. This has contributed a lot to the actions of the Fed. The US dollar won back previous losses and significantly strengthened after Fed Chairman Jerome Powell ruled out the possibility of easing monetary policy. Recall that following the meeting, the American regulator retained the key rate unchanged. Positive comments by the Fed Chairman marked the beginning of a strong rally of the US currency. As a result, the EUR/USD pair fell below the 1.12 mark, while on the contrary, the USD/JPY pair rose to the level of 111.60 from the previous level of 111.05.

Hee1OEEON5pF0WehrIACLErFg0w8e7lsDdCbVOlt

Experts point out two main reasons for the further strengthening of the US dollar. First, the Fed chairman expects an improvement in the prospects for the American economy as statistics recovers. Secondly, he sees no reason for lowering interest rates. However, his point of view differs from the opinion of other regulators who are seriously concerned about the strengthening of the American currency. Last month, there were differences in the monetary policies of a number of states that led to a strengthening of the US dollar, noted by analysts. Experts summed up that this trend will continue and will contribute to an increase in demand for the American currency.

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