US Dollar surges to fresh six-month highs

Chris Beauchamp IG

Weak China services growth and return of US investors after Labor Day pushes US dollar to six-month high, says Axel Rudolph, Senior Market Analyst at online trading platform IG.

China service sector growth at 8-month low

“Lower-than-expected China services growth - even though still in expansionary territory - has helped push the greenback to fresh six-month highs on flight-to-quality flows. With US players back from their Labor Day holiday trading volumes have also picked up ahead of tomorrow's US August ISM services PMI data."

RBA rates unchanged and weak Eurozone PMIs

“AUD/USD slid to a 10-month low as the RBA kept rates unchanged at 4.1% for a third straight meeting and the greenback appreciates. EUR/USD dropped to a 3-month low and European bourses fell on weak Eurozone PMIs and as inflation expectations rise. Tomorrow's BOC rate decision, Fed Beige Book and US ISM services PMI data may increase volatility further still."

Author

Chris Beauchamp

Chris Beauchamp has been with IG for four years, and in that time has become a regular commentator and analyst for the financial press and TV, with appearances on all the major financial channels as well as the BBC and Sky News.

GBP/USD hovers around daily lows near 1.3450

GBP/USD trades with decent losses on Thursday, revisiting the 1.3450 zone. Cable’s resumption of the selling interest comes after two daily advances in a row and follows the improved sentiment around the Greenback amid fresh concerns in the Middle East.

EUR/USD weakens amid Middle East tensions

EUR/USD extends its losses for the second consecutive day, trading around 1.1520 during the Asian hours. The currency pair faces downward pressure as the US Dollar gains strength, propelled by renewed safe-haven demand among global investors.

How Wall Street rigs the game [Video]

In this week’s Live from the Vault, Andrew Maguire is joined by Peter Antico and Sean Stone to discuss the Paradigm of Money - an in-depth expose of financial market corruption, from naked shorting to the two-tier system that protects Wall Street.

US Dollar: NFP and inflation mix complicate Fed path

BNY strategists John Velis and David Tam highlight the July Nonfarm Payrolls (NFP) report and upcoming Consumer Price Index (CPI) releases as key inputs for the Fed. They see consensus around 80,000 jobs, with a breakeven near 50,000 to keep unemployment steady. A weaker print could lower 2-year yields and rate-hike expectations.

Markets question Fed's inflation resolve after July FOMC meeting

Federal Reserve Chairman Kevin Warsh continues to project a tough stance on inflation, repeatedly promising to restore price stability and keep inflation anchored at the central bank's longstanding 2% target. But according to Mike Maharrey in this week's Money Metals Midweek Memo, markets are beginning to judge the Fed by its actions rather than its rhetoric—and so far, they aren't convinced.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.