Dollar Extends Advance after Fed Summit

Binary.com Daily Financial Review August 30th 2016

Dollar Extends AdvanceMorning Report: 09.00 London

  • The dollar extends advance as the rally which started on Friday following the Jackson Hole Fed summit drives into this week.
  • Comments from Fed Chair Yellen and Vice Chair Fischer have set the dollar soaring on the prospect of a rate hike as early as September, with the possibility of two rate hikes before the end of the year.
  • The dollar is on the rise again after nipping back yesterday.

Dollar Extends Advance

 

  • The dollar pairs are responding as expected, with the main pairs recovering yesterday only from selling off again this morning.

Dollar Extends Advance

Dollar Extends Advance

Dollar Extends Advance

Dollar Extends Advance

 

 

  • The pound/euro balance has been in the pound’s favour since Friday.

Dollar Extends Advance

 

Coming up today:

  • Coming up today, we have UK lending to individuals at 09.30.
  • Following this, we get Canadian current account and RMPI data at 13.30.
  • US CB Consumer confidence follows at 15.00.

Trade Idea:

  • The AUD/JPY has enjoyed the softening of the yen in recent days and this could well continue. A Fed rate hike is a sign of US strength and by implication, global strength. While China is the world’s booming economy, it’s the US that still calls the shots. Any US growth could have a knock-on effect on China and therefore Australia.

 

Dollar Extends Advance

A good way to play this is a HIGHER trade predicting that the AUD/JPY will close above 78.00 in 35 days for a potential return of 128%.

Dollar Extends Advance

fed sets course

N.B. This financial market report is intended for educational and information purposes only. It should not be construed as investment or financial advice and you should not rely on any of its content to make or refrain from making any investment decisions. The views expressed in this report are those of the author and do not necessarily reflect the views or position of Binary.com. Binary.com accepts no liability whatsoever for any losses incurred by users in their trading. Binary options trading may incur losses as well as gains.

 

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