Dollar jumps after Fed officials

NEW YORK (Reuters) – Daily FX Signals – The dollar jumped from one-week lows on Thursday after two regional Federal Reserve presidents suggested a faster pace of reducing the U.S. central bank’s asset purchases, comments that pushed the greenback toward a key resistance level.

The dollar index, which measures the greenback against a basket of six major trading currencies, traded a bit higher just before the remarks by James Bullard, the president of the St. Louis Fed, who is considered a hawk on policy.

FX Signals

Bullard said in comments to CNBC that he was skeptical that inflation would moderate and for that reason the Fed needed to start tapering its bond-purchasing program.

“We have to get going on taper, get the taper finished by the end of the first quarter of next year. Then we can evaluate inflation, what the situation is,” Bullard said.

Dallas Fed President Robert Kaplan said the strength of the U.S. economy still puts the Fed on track to begin reducing its monthly bond purchases in October or soon after.

The dollar index jumped above 93, a key resistance level, to trade 0.27% higher at 93.0361. On Wednesday, the index had dropped to 92.801 for the first time since Aug. 17.

Trading EURUSD

The euro fell 0.18% to $1.175, while the dollar gained 0.50% to 0.9181 against the Swiss franc.

Two weeks ago the dollar index rose above 93 and has been testing that level since then as a support level, said Steven Ricchiuto, U.S. chief economist at Mizuho Securities USA LLC.

The market will likely discount what Bullard said, in part because he is a non-voting member of the Fed’s policy-setting committee, but “his voice is heard in the room and you have to assume therefore it does have some impact,” Ricchiuto said.

POWELL EYED

Bullard and Kaplan’s comments came as the Fed’s annual Jackson Hole, Wyoming, symposium opened, with the spotlight on Fed Chair Jerome Powell’s speech on Friday.

Analysts doubt Powell will offer new hints about when the Fed may start to cut its asset purchases.

Powell will reiterate Kaplan’s message last week of being flexible and will have done a good job if the markets don’t move when he speaks, said Lee Ferridge, North American head of multi-asset strategy at State Street (NYSE:STT) Global Markets.

“He doesn’t want the markets to panic that they’re going to taper into a slowing economy,” Ferridge said. “He’s going to walk this line of leaving the taper on the table but putting out the idea of flexibility as well.”

Benchmark 10-year Treasury note yields were last at 1.3424%, after reaching 1.375% following Bullard’s comments, the highest since Aug. 12.

Currency market swings have eased ahead of Powell’s speech, with implied euro-dollar volatility at a one-week low.

Meanwhile, more central banks worldwide are exiting or contemplating exiting from ultra-easy accommodative policies. South Korea’s central bank on Thursday raised interest rates for the first time in three years.

Warning against illegal third party signal providers and FAKE Telegram Channels/Groups

Declining oil prices weighed on the Canadian dollar. Brent crude futures settled down $1.18, or 1.63%, at $71.07 a barrel.

US Dollar Kiwi dollar Aussie jump on central bank

Dollar jumps after Fed officials

Forex Signals – Dollar Gains as Yields Rise

Dollar jumps after Fed officials

Subscribe to our Signals and start receiving Forex Day Trading Signals from the very next trade! Forex Signals Learning Guides below with guide you with every trade you make!

Dollar Slips After Powell’s

FX Signals

EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, NZD/USD and USD/CAD, Gold, Oil and many many more… Forex Trading comes with it high risk. We help by referring only the very best forex brokers available in the marketplace. Your in safe hands with our partners.With our free forex learning guides you will be able to educate yourselves with the most up to date forex basics required in order to enter the Capital Markets. FxPremiere.com Learning centre is now available for all to read. With blog posts written monthly on the most common searched terms.