Dollar Extends Rally on Fed Member Comments
Binary.com Daily Financial Review August 22nd 2016
- 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.
- The GBP/USD and EUR/USD have gapped lower at the open as a result of this pressure.
- Meanwhile, the Australian and New Newzealand dollars continue to peel back from the highs.
- Elsewhere, the USD/JPY is rebounding.
- The USD/CAD has been the biggest winner since Thursdays as the oil heavy Canadian dollar experienced the biggest reversals.
Coming up today:
- The only economic item of note today is Canadian wholesale sales at 13.30.
- 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.
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%.
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