USD: Quiet consolidation – ING
|The dollar has quietly gone a little bid this week. We're not sure what's driving it, but we wouldn't read too much into it at this stage. Perhaps it's just that sitting short dollars is expensive with one-week dollar rates still well above 4.00%, ING's FX analyst Chris Turner notes.
Market moves may be limited
"There hasn't really been that much progress on Ukraine this week, despite European leaders hailing a 'breakthrough'. Let's see whether any more details emerge about the level of support the US is prepared to offer Europe in defending Ukraine, and also whether President Putin is prepared to accept European boots on the ground in Ukraine – the threat of which (under NATO) prompted Russia to invade Ukraine in the first place."
"In terms of the calendar today, we have prospective Fed Chair front-runner Christopher Waller speaking at 17CET, though the subject here is payments. More interesting will be the FOMC minutes released at 20CET, which will air more of the views of the two dissenters (Waller and Bowman) who voted for a rate cut in July."
"Market moves, however, may be limited given that the July jobs report was released a few days later. A much better read on the Fed situation should emerge on Friday afternoon during Chair Powell's speech at Jackson Hole. In all, we don't see the need for big DXY moves today and struggle to see it breaking above 98.50/60 resistance."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.