Hawkish comments on Fed Member Kashkari on rates and inflation helped the US Dollar to gain against other major currencies.
- The US Dollar is continuing to gain after strengthening over the past few days. The bullish momentum was increased by FOMC member Kashkari’s comments which were quite hawkish. He said that if rates needed to be held unchanged for an extended period, or even raised, it would be done. He also stated that the 2% inflation goal would be achieved. Bullish momentum has a reason to persist today, so that is something for day traders to think about.
- Global stock markets are mostly a bit lower over recent hours, although most have been enjoying gains over recent days.
- The Japanese Yen is continuing to sell off this week after the big gains it made last week following two suspected interventions in its favour by the Bank of Japan. Currency crosses often rebound the following week against an unusually large movement the previous week, and this seems to be acting here against the Yen. It may be wise to look for long trades in Yen crosses especially in NZD/JPY and CHF/JPY.
- In the Forex market, since today’s Tokyo open, the strongest major currency has been the US Dollar, and the weakest major currency has been the Japanese Yen, putting the USD/JPY currency pair in focus.
- Bank of Japan Governor Ueda made some comments, most significantly, he said the Bank won’t necessarily wait until the inflation target has been reached to start raising rates again. This is a hawkish hint at a time the Yen is being sold.
- It is a public holiday in France today.
Ready to trade our Forex daily forecast? We’ve shortlisted the best currency trading platforms in the industry for you.
Top Regulated Brokers