Will the Federal Reserve Cement December Rate Hike Bets?
Saturday, Oct 29, 2016
The FOMC's November interest rate decision may fuel the near-term rally in USD/JPY as the central bank appears to be following a similar path to 2015, but more of the same from the BoJ accompanied by another lackluster U.S. NFP report may undermine the recent advance in the exchange rate as it erodes the case for a further deviation in monetary policy.
What fundamental winds bode well for the US Dollar and which portend trouble? There are simplistic expectations set out for the world’s most liquid currency, and that can lead to misconceptions and unwanted surprise for traders.
Gold prices were fractionally higher this week with the precious metal up nearly 1% to trade at 1275 ahead of the New York close on Friday.
In a world in which Central Banks have become the primary driver of most global economic trends, markets have built-in a tendency to draw inference from the slightest of suggestions.
The New Zealand Dollar has been in salvage mode since October 13 as it recovers from a near 6% drop over 26 trading days that began in early September.
The offshore Yuan dropped to record lows this week, with the USD/CNH touching 6.7984 on Friday.