Deciding on the dollar

31 August, 2016

We enter the last trading day of August, a month that has been dominated by growing debate as to whether the Fed should increase interest rates at their September meeting. This could be decided by the Employment Report, released Friday. But for the moment, the market has been moving more towards that possibility. This is most prevalent on USDJPY, given that there has also been debate on the other side as to the possibility of the BoJ implementing more easing measures in the coming weeks. Just what these could entail is another matter, given that the central bank has thrown pretty much every tool it has at the problem of low inflation (and deflation) over the past several years. Nevertheless, the yen has been underperforming all other major currencies over the past week in response to such speculation. It has also taken the pressure off USDJPY, which has moved away from the 100 level in recent trading sessions.

Whilst the dollar has been in the ascendancy, the outlook for the single currency has been a little more, mixed. We’ve seen very slow and steady against sterling, taking EURGBP down towards the 0.8500 level in recent trading sessions, from the 0.8725 high seen mid-August. For the most part, the single currency has been caught between the policy dynamics of the US and Japan, but in the case of a Fed tightening next month, the euro could perform comparatively well on the crosses. In times of risk aversion, the strong currency account surplus has often proven to be a support for the currency as investors flee currencies with more vulnerable funding needs. For now, the 115.00 level on EURJPY remains key, a close above here not seen since late July.


Source link  
Profit-taking after big sell-off

There is a demand for profit-taking in the markets after powerful movements at the end of last week and a very aggressive trading start...

Hot August for currency markets

This August seems hot. Not only temperature but also currency market volatility is rising. The period of active vacations, which is accompanied by a decrease in volumes...

Dollar is close to its important levels

The demand for dollar, provoked by the fears of new US sanctions against a number of countries and expanding trade conflict with China push the American currency close...


Trump raises stakes in the trade war

Two opposite trends prevail in the global markets. Strong reporting of companies, including Apple indicators supports the demand in world...

USD grows on high GDP expectations

The single currency is traded near weekly lows against the dollar, getting under pressure after maintaining the soft tone of the ECB during the regular meeting...

Facebook failure obscured optimism

Yesterday the markets enjoyed a rare portion of good news on international trade. Trump and Juncker agreed not to introduce new tariffs for the period of negotiations...


Trump tosses dollar from highs

The dollar remained under pressure after the Trump's criticism about the strengthening of the national currency. Despite doubts that the influence of the president...

Oil hits 3-month lows

On Monday, the dynamics of oil was in the spotlight on a combination of negative factors by both the potential demand and the supply part. Asian markets...

Fed Monetary Policy Report to be released

This report is release twice a year and provides an insight into the conduct of monetary policy and economic developments and prospects for the future for the...


In the past 24 hours Bitcoin has gained 4.91% and reached $6402.8165015. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -2.3522% and is now at $1.1335. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -21.55% and is now at $286.514811404. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets89%
2FXTMFXTM87%
3HYCMHYCM85%
4FxProFxPro80%
5FIBO GroupFIBO Group78%
6FXCMFXCM73%
7AvaTradeAvaTrade68%
8HotForexHotForex67%
9Alfa-ForexAlfa-Forex66%
10XMXM66%
  


Share: