Waiting for Yellen

February 8, 2016

The dollar reaction to US payrolls on Friday was relatively muted, given the shake-out seen in the middle of last week of dollar longs, but most managed to put the positive above the negatives, which was probably the best way to look at it. Earnings were firmer and the unemployment rate was lower, but with wider measures of slack remaining steady. What the price action of last week has done is to once again change the dynamics of the FX market. The yen has unwound all of the losses seen against the dollar in the wake of the BoJ’s move to move some interest rates into negative territory. It’s far less a question of the dollar vs. the rest of the world, merely because it’s supposedly in a tightening cycle whilst many others are facing in the opposite direction. As to what has replaced this mantra, for now it’s too early to tell.

For the week ahead, China celebrates its new year, so that should in theory put that story on the back-burner. Taking centre stage is likely to be Fed Chair Yellen as she testifies in her semi-annual monetary policy report on Wednesday and Thursday. Naturally, the change in pricing that has occurred so far this year, as compared to their projected rate path in December of last year, could well put her under some pressure on just how the Fed is now seeing the US and global economy. FX is likely to trade in a relatively muted fashion ahead of this, with no key data to distract. Commodities have also been on a more even keel of late, oil seemingly comfortable in the mid-30s level on the Brent active.

Publication source
FxPro information  FxPro reviews

October 26, 2016
Greenback is powered by Fed rate expectations
On Wednesday, the US dollar was backed by hopes that American interest rates will edge up by the year-end. It stood flat during Asia trade, just below a nine-month high reached overnight, while the Australian dollar earned as inflation data doused the probability of a rate drop there...
October 26, 2016
Rising rate hike odds push Dollar
The Greenback extended its rally to a nine-month high against other major peers against the rising bets of a FED tightening in December. As rumors are circling the next US leader saying that they will shift the stimulus burden from FED via changes in the fiscal policy...
October 26, 2016
Gold futures edged higher on Tuesday
The XAU/USD pair traded flat on Tuesday. The price remained between 1270 and 1260 dollars per ounce during the day. Gold prices struggled to find support around 1260. Sellers failed to break the level and the yellow metal bounced upwards and recovered to the upper boundary of the range...

FIBO Group Rating
HotForex Rating
Grand Capital Rating
Fort Financial Services Rating
OctaFX Rating
XM Rating

Banc De Binary Rating
IQ Option Rating
OptionFair Rating
Anyoption Rating
TropicalTrade Rating
Beeoptions Rating