News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Further your trading knowledge and gain informed market analyses from our expert analyst @DavidJSong on Oil with our free Q4 guide, available for free today.https://t.co/Y6XECmr5fQ https://t.co/XQI3PN4bkQ
  • Nasdaq 100 may hit new high soon. https://t.co/ACtVqiOBl0
  • HSTECH index has likely formed an "Inverse Head & Shoulders" pattern. https://t.co/YFIQEYmuyq
  • The HSI has likely formed a “Double Bottom” chart pattern, which is usually viewed as bullish-biased. https://t.co/wMQ14A867Q
  • When markets are falling, how can you short sell? Learn more here:https://t.co/K4EFd6A6xd https://t.co/ynjtSQqHVy
  • Futures have their own set of characteristics and appeal to different types of traders and investors for a variety of reasons. Get your free trading guide and learn to trade the markets with futures here. Download your guide today!https://t.co/72oKM0kLHL https://t.co/dLBhWmxuub
  • Relative stability in EUR/USD has masked weakness in the Euro against most other major currencies, and that weakness can be expected to persist in the week ahead and likely for longer. Get your weekly Euro forecast from @MartinSEssex here: https://t.co/g6aCr7Uxg2 https://t.co/KZHBa4GXCN
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/Z8oipLero0
  • Gold prices moved higher last week, but an upbeat US retail sales report underpinned Treasury yields on Friday, which weighed on bullion. Chinese Q3 GDP is in focus for XAU traders. Get your weekly gold forecast from @FxWestwater here: https://t.co/L9JstXgjx0 https://t.co/rCikjEv1Fm
  • Equity traders often focus their approach on specific sectors, designed to fit with their approach and style. What sector are you going to target? Read more to find out!https://t.co/5gbiHmY8yl https://t.co/dzRs61zPlt
USD Boosted by Fed's Powell Ahead of the FOMC Meeting

USD Boosted by Fed's Powell Ahead of the FOMC Meeting

Nick Cawley, Strategist

USD News and Talking Points

- US Dollar boosted by extra Fed communication chatter.

- Short-Dated US Treasury yields near recent highs.

The DailyFX Q2 Trading Forecasts for all major currencies, commodities and indices, are now availableto download to help you make more informed trading decisions.

US Dollar to be Underpinned by Rate Hike, Hawkish Chatter

The Fed is fully expected to hike interest rates by 0.25% at today’s FOMC meeting, the second hike in a year. After the rate decision Fed Chair Jerome Powell will communicate his thoughts on the US economy and likely give clues to further rate hikes ahead, with analysts divided if there will be a total of three or four 0.25% hikes in 2018. At present there are only four FOMC meetings a year that also have updated economic projections – March, June, September and December – and these meetings are the ones traditionally seen as ‘live’ where policy changes occur. The market view is that if Powell now communicates after every meeting, all eight FOMC meetings per year should be seen as ‘live’.

Today’s meeting comes on the back of some robust US economic data with yesterday’s US inflation reading the highest in six years, while US unemployment is at an 18-year low. If Powell does give himself flexibility on communication and if today’s rate hike is accompanied by a hawkish Fed chatter, the US dollar could easily rally back to recent highs.

DailyFX Chief Currency Strategist John Kicklighter will be covering the FOMC Meeting Live from 6:45pm.

The latest IG Client Sentiment Indicator shows retail are positioned in a wide range of currency pairs, commodities and indices, and why sentiment changes matter.

US Dollar Index Price Chart Four Hour Timeframe (May 10 – June 13, 2018)

USD Boosted by Fed's Powell Ahead of the FOMC Meeting

US Treasury Yields Pushing Higher

With US monetary policy tightening further, US Treasury yields continue to push higher, giving strength to the greenback. The interest-rate sensitive 2-year is near its recent decade-high of 2.59% while the 10-year will hit a new seven-year high when it trades back above 3.12%.

USD Boosted by Fed's Powell Ahead of the FOMC Meeting

If you are new to foreign exchange, or if you would like to update your knowledge base, download our New to FX Guide and our Traits of Successful Traders to help you on your journey.

What’s your opinion on the US Dollar? Share your thoughts with us using the comments section at the end of the article or you can contact the author via email at Nicholas.cawley@ig.com or via Twitter @nickcawley1

--- Written by Nick Cawley, Analyst

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES