Greenback Taking Charge as Fed Minutes Loom

Greenback Taking Charge as Fed Minutes Loom

There appears to be some growing speculation that the Federal Reserve might still be considering a rate increase this year which has investors anxiously awaiting today’s release of the last Fed policy meeting. As a result, the USD/JPY rebounded from a recently struck 7-week trough; the greenback also moved higher against EM currencies. In direct contrast to the comments made by the Fed’s John Williams, William Dudley, the head of the New York branch of the Federal Reserve, said a September rate hike was not out of the question in his mind.

As reported at 10:57 am (BST) in London, the USD/JPY pair was trading higher at 100.746 Yen, a gain of 0.49%; the pair has ranged from a low of 101.14 Yen to a peak of 101.15 Yen in today’s trade. The AUD/USD lost 0.85% to trade at $0.7635 while the NZD/USD was down 0.62% to trade at $0.7240. The US Dollar Index, which helps FX traders weigh the relative strength of the Dollar, was trading higher at 94.916 .DXY, a gain of 0.13%.

Fed Watchers to Target Bullard

Aside from the Fed minutes which will be released later today and which will drive market sentiment, FX traders will be waiting to hear the opinions of yet another Fed official, this time James Bullard of the St. Louis Branch of the Federal Reserve. Bullard is considered a “hawk” among the FOMC members, and could echo the latest rhetoric from Dudley which, again, would provide some support for the Dollar in the short term.

Barbara Zigah

After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.