Dollar Extends Advance after Fed Summit
Binary.com Daily Financial Review August 30th 2016
- 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.
- The dollar pairs are responding as expected, with the main pairs recovering yesterday only from selling off again this morning.
- The pound/euro balance has been in the pound’s favour since Friday.
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.
- 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.
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