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Dollar Extends Rally on Fed Member Comments

Binary.com Daily Financial Review August 22nd 2016

dollar extends rallyMorning Report: 10.00 London

  • This morning, the US dollar is extending its overnight gains, following comments from two different Fed members.
  • On Friday, San Francisco Fed President John Williams said that a rate hike in September could be “in play”.
  • Then late Sunday, Fed Vice Chairman Stanley Fischer gave a generally upbeat assessment of the US economy.
  • The US dollar index has jumped higher, putting pressure on other dollar pairs.

dollar extends rally

  • The GBP/USD and EUR/USD have gapped lower at the open as a result of this pressure.

dollar extends rally

dollar extends rally

  • Meanwhile, the Australian and New Newzealand dollars continue to peel back from the highs.

dollar extends rally

dollar extends rally

  • Elsewhere, the USD/JPY is rebounding.

dollar extends rally

  • The USD/CAD has been the biggest winner since Thursdays as the oil heavy Canadian dollar experienced the biggest reversals.

dollar extends rally

Coming up today:

  • The only economic item of note today is Canadian wholesale sales at 13.30.

Trade Idea:

  • The USD/JPY has been pushing higher, as the US dollar gains renewed interest. The pair is experiencing competing forces of yen demand and dollar interest rate demand.

dollar extends rally

 

A short term reversal before September could well be on the cards and a good way to play this is a LOWER trade predicting that the USD/JPY will close below 100.50 in 9 days for a potential return of 132%.

dollar extends rally

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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