Bullet Report: Greenback on the Rise | US Interest Rate Hike Likely

Posted On 29 Aug 2016

Greenback closed as one of the best performing major currencies last week. Fed Chair Yellen mentioned that “the case for an increase in the federal-funds rate has strengthened in recent months” during the Jackson Hole Symposium last Friday. A report shows that the probability of a Fed rate hike in September rose to 42% and a 65% chance of a rate hike this year. Keep an eye out for the US ADP employment on Wednesday, US ISM Manufacturing PMI on Thursday and highly anticipated non-farm payrolls report due out on Friday.

Currencies: BOJ Governor Kuroda said that central bank of Japan will insist to expand stimulus if needed. USDJPY rose over 200 pips to 102.30 level since last Friday. The Jackson Hole meeting rhetoric undoubtedly gave the dollar bulls a much needed temporary boost after the greenback was hammered throughout the week. A good September read on Friday’s Non-Farm payroll numbers should make the September FOMC meeting a highly probable live meeting.

Stocks: Most Asian share markets tumbled on Monday while the U.S. dollar added to gains made after Federal Reserve Chair Janet Yellen indicated a U.S. interest rate increase remains on the cards for this year. Japan’s benchmark Nikkei 225 added 2.2 percent to 16,719.31 in early trading. Japanese stocks generally gain on a weak yen because the earnings of the nation’s giant exporters are boosted. U.S. shares fell Friday. The S&P 500 slipped 3.43 points, or 0.2 percent, to 2,169.04. The Dow Jones industrial average fell 53.01 points, or 0.3 percent, to 18,395.40. The Nasdaq composite rose 6.71 points, or 0.1 percent, to 5,218.92.

Oil and Gold: Gold prices finished last week on the defensive as hawkish comments from Fed Chair Janet Yellen fueled rate hike speculation, boosting the US Dollar. Crude oil prices followed suit, with a surging greenback putting selling pressure on WTI contracts. Yellen said “the case for an increase in the federal funds rate has strengthened in recent months”.

The post Bullet Report: Greenback on the Rise | US Interest Rate Hike Likely appeared first on Forex.Info.

Source:: Bullet Report: Greenback on the Rise | US Interest Rate Hike Likely

About the Author

With over a decade of trading expertise and 100,000 fulfilled clients in 160 countries worldwide, easyMarkets will tick all your boxes whether you are a new or experienced trader, affiliate or introducing broker. [space height="20"] Trade 300+ markets including currencies, commodities, metals, vanilla options and indices from one place without the jargon, complicated offers and confusing terms! [space height="20"] Welcome to the exciting world of trading. Welcome to easyMarkets.