USD in the midst of a low intensity grind higher - Westpac

Sandeep Kanihama FXStreet Contributor

DXY in the midst of a low intensity grind higher that could yet see it test 99-100 but hard to get excited beyond that, according to Richard Franulovich, Research Analyst at Westpac.

Key Quotes

“The plunge in oil could see headline inflation rates tumble toward 0.0% on a six-month annualised basis in coming months. That will bleed into core rates as it always does and make it difficult for the Fed to sustain an overtly hawkish stance.”

“Republicans and their agenda will be buoyed victories in recent Congressional special elections but members appear no closer to a consensus on tax cuts, tax reforms or infrastructure.”

“Fed officials are hinting at a 20 Sep announcement for when balance sheet normalisation could begin but it is the dog that won’t bark. Fed Treasury holding maturities run well below the maximum run-off $30bn cap in all but seven months through 2019/2020, implying a glacial rundown in the Fed’s balance sheet.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

GBP/USD clings to multi-day peaks below 1.3500

GBP/USD trades with marked gains on Friday, now giving away some gains following an earlier surpass of the key 1.3500 yardstick. Indeed, Cable gathers fresh steam amid the strong offered stance in the Greenback, all after US NFP badly missed expectations in July.

EUR/USD: Post-NFP bounce falters around 1.1580

EUR/USD reverses Thursday’s decline and trades with solid gains in the 1.1560 region, or two-month peaks, on Friday. The pair’s firm performance comes in a context of a sharp correction in the US Dollar as investors continue to assess disheartening US NFP readings.

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.

XRP Price Forecast: XRP nears critical $1.00 support

Ripple (XRP) remains pressured on Friday, trading around $1.03 at the time of writing. The token appears to hold this current level as support but lacks a catalyst to sustain a knee-jerk rebound toward the next key resistance at $1.10.

Is Gold about to enter its biggest bull run since 2020?

Gold has stormed back into the spotlight and its next move could leave late buyers chasing. On August 5, the yellow metal surged almost 7% – roughly $174 – to close near $4,308 an ounce, posting one of its biggest daily advances in recent history. A weaker U.S dollar, falling Treasury yields, changing Federal Reserve expectations and renewed safe-haven demand all struck at once.

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.