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  • #16
    Dollar stands still above 13-month low ahead of Fed speech

    The dollar slightly moved up past a 13-month low against a group of major currencies like the Yen on Wednesday. Such positive movement was seen as a result of the upcoming speech by the Fed that would give clues on the course of its next monetary tightening. Dollar was steady at 111.89 Yen, recording a 0.7 percent rise since Tuesday.

    The dollar index price moved up a notch at 94.109 on Tuesday after reaching its lowest level since June last year. Traders are also on the lookout for the U.S. senate’s next action regarding the open debate on a bill to remove the Obamacare program.

    There is the fact that concerned citizens are beginning to lose confidence in the U.S. President Donald Trump’s ability to pull together stimulus needed to improve the U.S. economy and inflation. The dollar could also remain on the low side since the Fed may not change interest rate at the end of its two-day meeting that would end on Wednesday.


    • #17
      Euro on Roller Coaster to a near 2-year high

      The Euro almost hit a two-year record high on Wednesday as it traded at $1.1700. It was just a few pips shy of $1.1711 needed to match a level set since Jan 15, 2015. On that particular day of the year it traded at $1.1793. The dollar lost its footing when the Fed announced that it would not increase interest rates, which saw the greenback fall against the Yen to 111.42, and $1.3087 against the Pound.

      The dollar would have gone up if the Fed had agreed on interest rate increase, as it was already trading Flat before the announcement. The news added salt to the Dollar’s injuries and it slumped further, allowing major currencies to climb higher.
      From the look of things, the Fed is about to make a major policy change but the questions remains as to when the operation will begin. Fed on Wednesday was expected to provide more clues about their operation, but onlookers were probably disappointed. So down the dollar goes.


      • #18
        Dollar recovers and steadies after Wednesday Loss

        The dollar took a good turn after Wednesday loss against the Euro at two and half year low. The loss came as a result of the Fed’s decision and statement that it would not increase interest rate. The greenback has fallen 13% against the Euro and 5% in the past 4 months; causing concerns about how long the Euro will be allowed to exhibit such strength.

        This Thursday, the dollar recorded some gains around 0703 GMT, reaching $1.1728 per Euro. Still, the dollar is trading at 0.2% lower against a group of major currencies, including the Australian dollar. The Strength of the Euro is growing concern, as more aggressive approach may be employed to slow its hand on any reduction in massive programme of bond buying.

        Frederic Lamotte, Chief investment officer at Indosuez Wealth Management said regarding the strength of the Euro, that “we will continue in that direction and FX people are talking about $1.21. I don’t think it would temper the positive mood, but we have to look at it”.


        • #19
          Sterling Hits 10-month high, but could failed to remain firm

          The Pound hit a 10-month high on Thursday, but later edged lower as investors take profit in reaction to the Fed unchanged policy. The U.S. Fed gave a hint that interest rates might rise more slowly than expected.

          The downslide of the pound within a short period does not take away the fact that it is strong and ready to face any pressure within broad trading ranges.

          Sterling traded as high as $1.13157, its highest since September, but later eased back to 1.3065 by 0.4 percent in one day.
          Meanwhile, sterling is trading low against the Euro and has only been able to capitalize on the dollar’s weakness. It did gain some grounds on Thursday against he Euro, but it is a few inch away from the 8-month low at 89.23 pence per Euro.


          • #20
            EURUSD fails to maintain uptick to August 2015 tops

            EURUSD recovered overnight and gained more pips after the European open, pushing the price to almost 1.1715 August 2015 tops. This lasted only a few hours before trader’s grabbed profit and the pair fell back to 1.17 handle.

            The pair failed to trade at 15 pips higher, but reverted towards the range near 1.17 handle, despite renewed broad based U.S. dollar selling and weaker European stocks.

            The US Q2 GDP report will be released later today, which could make the pair to struggle. There could be further decline for the pair as it may trade below the 1.17 handle. However, the German CPI figures might give the Euro a boost, but will not be enough to see it through the 1.17 handle. “EURUSD is at the top of a 3 month channel and poised to encounter its 200 ma at 1.1797….” says Karen Jones, analyst at the Commerzbank.


            • #21
              Dollar slumps on month-end moves, Scaramucci departure

              The U.S. dollar hit a more than 2-1/2-year low against the euro on Monday on month-end portfolio adjustments and uncertainty over the U.S. political outlook after the departure of White House communications director Anthony Scaramucci.
              The euro hit more than 2-1/2-year peaks against the dollar earlier in the session on month-end buying and euro zone inflation data that kept expectations for a more hawkish European Central Bank alive. It extended gains to trade as much as 0.8 percent higher against the dollar on the day after the New York Times reported U.S. President Donald Trump had decided to remove Scaramucci.
              The White House later said Scaramucci was leaving the job after little over a week. Scaramucci's departure follows one of the rockiest weeks of Trump's presidency in which a major legislative effort - a healthcare overhaul - failed in Congress and both his spokesman and previous chief of staff left their jobs.
              The dollar index, which measures the greenback against a basket of six major currencies, hit its lowest since early May 2016 of 92.786 after the news of Scaramucci's departure. The dollar also hit a more than six-week low against the yen of 110.22 yen.


              • #22
                U.S. Dollar touches 15 month low; reacts to U.S. political Turmoil in Washington

                The Dollar traded close to a 15-month low on Tuesday against a basket of major currencies. The political turmoil in Washington and weak U.S. economic data has crippled the dollar and left it on its knees. The Fed’s Policy outlook remains uncertain at the moment.

                Presently, there is only a 50% chance that the Federal Reserve will increase interest rate this December, says report from the CME Group’s FedWatch program. The dollar index traded 0.18% up at 93.03 shortly after touching its lowest level since May 2016. The Greenback fell below 110 Yen, touching 109.94 Yen.

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                • #23
                  U.S. slumps further to a new Low over renewed doubts on interest rate hike

                  The Euro hit a 2 years high on Wednesday as the dollar weakens further. The U.S. dollar has failed to recover amid doubts about interest rate increase by the Fed this year and also expectations that the ECB will ease policy.

                  The Fed is very much reluctant to raise interest rate again this year since it could hinder the plan to get 2% domestic inflation goal. Billard’s comments indicated that he is in opposition to another hike this year, which renewed doubts and caused the dollar to slump further.

                  Traders and investors are on the lookout for July U.S non-farm payrolls reports on Friday and also keeping close eye on the ECB’s stance tightening monetary policy. Positive talk about tightening monetary policy by the ECB is a good boost to the Euro so far. The dollar index traded low by 0.42% at 92.62.


                  • #24
                    U.S. dollar set to slump further after trading near 15-month low

                    The dollar now trades in its lowest exchange rate since May 2016 at the start of Friday in anticipation of the Non U.S. Farm Payrolls scheduled to be released 12 GMT. A high non-farm payroll number could be a relief and help the dollar to recover some of its losses.

                    The dollar came under serious pressure from fresh political instability in Washington this week and poor U.S. minor data. There were even more worrying signs on Thursday in both the economic and political sector.

                    Looking at the dollar index for the past two months, it has recorded about 0.1% loss and set to lose more 0.6% in a week after falling to a 15 month low of 92.548.

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                    • #25
                      Dollar on a long rise to the top after NFP figure release

                      The U.S. dollar surged to its biggest rate in one day over the past two weeks. It reacted positively to the July Non-farm payroll and comments from the NEC chairman Gary Cohn, who stated that the U.S. committee is working on a tax plan that will improve the U.S. economy in no time.

                      The dollar index made a 1% gain against six major currencies and hit a one week high of 93.774 after the release of Non-farm payroll figures. Although the non-farm payroll figure of 209,000 for July did not equal or surpass that of June, it was an unexpected positive figure that boosted the dollar within 2mins after its release.

                      There is no doubt that traders who had preciously shorted the dollar were forced to repurchase the currency after the data was released. Gary Cohn comments served as added motivation to the dollar. Sterling look set to hits its lowest price in a while.

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                      • #26
                        Dollar dropping back to 15 month Low due to unconvincing Fed remarks on Hike

                        For a second day in a row, the dollar drops some of its gains made on Friday after the NFP data for July. But, a dovish remark from the Federal Reserve officials regarding further interest rate hike had a negative effect on the dollar.

                        The dollar was already on its way down to a more than 15 month Low, and investors were all planning to go short on the dollar when the data was released on Friday, handing the dollar its best day so far this year. The Fed has made all to believe that interest rate hike would have to stay put until next year. Moreover, investors are still waiting for clues regarding when the Fed will start shrinking its $4.2 trillion Bond portfolio. The dollar index was down 0.1% at 93.353, still above the 15 month low of 92.548.

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                        • #27
                          Safe-Haven currencies on the rise over U.S. and north Tensions

                          Safe Haven currencies such as the Swiss Franc and Japanese Yen rose against the dollar on Wednesday as tensions between the U.S and North Korea increases. The dollar slipped by 1.15%, nearly touching a two-week low versus the Yen and Franc. It last traded 109.79 Yen, which is its lowest in two months against the Yen.

                          Managing director FX at Jefferies in New York said that there could be increased tensions between both countries in the future to come. “Tensions are high and not going away at the moment. Safe heavens are bid and markets are a little uneasy”, he said.

                          Dollar index was down 0.12% at 93.54 after grabbing some gains earlier today. The market took a surprise turn after President Donald Trump declared that any threat from North Korea would be met with fire and fury.

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                          • #28
                            EUR/USD rebounds towards mid-1.17s as the dollar slips

                            Following a sharp drop to a fresh weekly low at 1.1689 during the first half of the NA session, the EURUSD took back its daily losses to turn flat around mid-1.17s. As of writing, the pair was trading at 1.1740, losing 12 pips, or 0.1%, on the day.

                            Although the latest downfall looked like a technical sell-off as there were no data releases at that time, investors seem to be looking for excuses to buy more US dollars. Similar to yesterday's JOLTS Job Openings and IBD/TIPP Economic Optimism data, today's data from the U.S. were not seen as typical market movers and didn't receive any market reaction when they were released. However, as American traders hit their desks, another greenback rally was triggered, which dragged the pair to its weekly low. After leaping to 93.77, the DXY struggled to extend its gains and is now virtually unchanged on the day at 93.50.
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                            • #29

                              Dollar reacts to less than expected U.S. consumer price index for July

                              Dollar lost some gains against a basket of major currencies on Friday, after the U.S. consumer prices data fails to meet up to expectations. The figure for July was higher than that of June, but it was less than expected. This could make the Federal Reserve to reconsider raising interest rate again this year, as the data showed that the inflation level is very weak.

                              The US consumer price index was higher than June by 0.1%, but there was a general expectation that it would rise 0.2% in July. This made the dollar index to drop down drastically by 0.37% at 93.05. The dollar on the other hand fell to a 16 week against the Japanese Yen.

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                              • #30
                                Traders abandon safe heaven currencies and gave the dollar a boost

                                The dollar gathered more pips on Monday as traders withdraw their position on safe heaven currencies. Traders initially placed a bet against the greenback due to the pressure it had in the wake of increasing tensions between the North Korea and the U.S coupled with poor inflation data.

                                Investors are back for the dollar after a record of none actions between North Korean leader and U.S. President Donald Trump during the weekend, bringing the dollar back to life. The dollar index rose 0.3% against six major currencies in the world. Six of these currencies are considered safe heaven. Against the Swiss Franc, the dollar rose one percent, its best since July.

                                Mark McCormick, North America head of FX strategy at TD securities in Toronto, said that the dollar’s weakness would continue as long as there is a rift between the U.S. and North Korea.
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