Markets Increasingly Volatile Over the Weekend? This is what investors need to pay attention to


 The king of currencies the US dollar is still showing mixed movements heading into the end of the week, but showed continued depreciation at the close of the New York session yesterday.

Some Federal Reserve (Fed) officials still believe that the policy tightening measures by the central bank are still far from over.

However, a Reuters poll of economists suggests the Fed is likely to slow policy tightening with interest rate hikes expected to be as low as 25 basis points for the early February meeting.

This was followed by the inflation rate in the United States (US) which recorded a continuous decline for 6 months in a row and the labor market was also a bit gloomy.

Developments in Europe, central banker Klaas Knot noted that the market underestimated the commitment to measures to lower prices.

While the President of the European Central Bank (ECB), Christine Lagarde stated that the central bank will remain on the path of monetary policy tightening.

Keeping an eye on the market situation, investors are monitoring the change in market sentiment which is quite risky due to concerns about a global economic recession after early signs from the US economic data were published.

Thus, high-yielding currencies such as the Australian dollar and the New Zealand dollar traded gloomy at the end of the week.

The Aussie dollar was pressured by the release of the Australian jobs data report in the Asian session yesterday with readings for last December.

While safe-haven currencies such as the Yen and the US dollar have the potential to record an increase, the situation based on the policies of their respective central banks slightly inhibits the opportunity.