The US dollar climbed against the vast majority of its most-traded peers (with the exception of the surprisingly strong euro) following yesterday’s drop caused by comments from US policy makers.
Yesterday, Governor Lael Brainard warned against preemptive removal of monetary accommodation while Minneapolis Fed President Neel Kashkari voiced an opinion that there is no urgency to act right now. At the same time, Atlanta Fed President Dennis Lockhart talked about necessity to discuss monetary tightening. The comments sent confusing signs, driving the dollar down. Yet today the currency logged strong bounce as market participants were considering chances for an interest rate hike from the Federal Reserve this year to be fairly high.
The beginning of the trading week provided little in terms of economic data from the United States, giving no help to the US currency in determining trend. That could change later this week as a huge number of economic releases are scheduled for the Thursday’s session.
GBP/USD dropped as much as 1.2% from 1.3334 to 1.3174 as of 15:38 GMT today. USD/JPY ticked up from 101.83 to 102.17. USD/CHF rose from 0.9717 to 0.9741.
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