Dollar stabilizes after drop

28 March, 2017

The dollar stabilized today after sliding to a four-month low against the yen in reaction to news of the setback on healthcare reform. Investors have now shifted their attention to US President Donald Trump’s other policies with regards tax cuts and infrastructure spending.

The market’s disappointment eased as focus now turns back to US economic growth showing signs of improvement while the Federal Reserve is firmly on a path of rate hikes, albeit gradual. Chicago Fed President Evans, speaking yesterday, reiterated his view that there would be 2-3 interest rate increases for 2017, although he was still cautious surrounding the inflation outlook with concerns that the underlying inflation rate would not reach 2% until 2019.

The interest rate differentials between the Fed and other major central banks, as well as evidence that the US economy is picking up, is helping support the dollar.

The dollar index edged higher today to 99.226 after falling to a 4-1/2-month low on Monday. The US 10-year bond yield moved off a 1-month low on Monday, and rose to 2.383% in Asian trading today.

The dollar edged slightly higher from its lowest level since November against the yen and rose to a session high 110.82 yen.

The euro was steady around $1.0860 after testing a four-month high yesterday.

Sterling fell from a 7-week high hit yesterday and was little changed around $1.2555 in Asia today. Focus is on the pound a day before UK Prime Minister Theresa May will formally trigger the start of two years of Brexit negotiations.

In commodities, gold was steady around $1,252 an ounce after hitting a one-month-high on Monday.

The return of slight risk appetite helped oil prices bounce. WTI crude was up 0.5% to rise near $48 a barrel following a 0.5% drop on Monday.

The economic calendar is relatively light today with focus mainly on the US consumer confidence report from the Conference Board. Meanwhile, a few Fed speakers will also attract the market’s attention. Those scheduled to make appearances today are: Fed Chair Janet Yellen, Esther George, Robert Kaplan, and Jerome Powell.

Source link  
Euro eyes economic sentiment indicator

The European Commission will publish its economic sentiment indicator (ESI) on Thursday at 09:00 GMT, which comes hot on the heels of last week...

US capital goods orders to rise further

Data on durable goods orders will be watched out of the United States this week for an indication of business spending amid a worsening trade row between...

Dollar firm as rate hike imminent

The Fed last raised rates in March, taking the federal funds rate to a target range of 1.50-1.75%. At the time, the Fed maintained its projection of a total...

Euro rallies after French debate

The dollar remained soft in Asian trading today as it came under pressure from falling US Treasury yields following not-so-hawkish speeches by Fed officials on Monday. Chicago Fed President Charles Evans quashed hopes for a faster pace of rate hikes...

Price approximately at 6-week high

EURUSD is currently up for the day and roughly at the level of the six-week high of 1.0782 recorded on Thursday. The RSI indicator is pointing to a bullish short-term bias as it is well above the 50 neutral level at 61...

Euro gets added boost

The euro was one of the top performing major currencies in the Asian session today after being lifted...

Antipodean currencies in the spotlight

The Asian session was an interesting one for both AUD and the NZD...

Dollar subdued ahead of Fed

The US dollar traded in a narrow rage against the yen as investors await the outcome of the Federal Reserve’s two-day policy meeting later today. It is widely expected that the FOMC will announce a rate hike...

EURGBP tests cloud base

EURGBP is being capped by the daily Ichimoku cloud which is acting as very strong resistance. The last time...

In the past 24 hours Bitcoin has lost -1.08% and reached $6468.71471798. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 0.6352% and is now at $1.1587. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 3.73% and is now at $203.336946432. Have the most popular cryptocurrencies compared online 24/7.

Top Brokers offering Forex Market Analysis

Forex Currencies Forecasts

Top 10 Forex Brokers 2018

# Broker Review
6FIBO GroupFIBO Group84%