Boris and Kathy Forex Weekly – 25-9-2017 – Crosses
September 24, 2017 10:53 pm
The Federal Reserve breathed new life into the U.S. dollar this past week by confirming that they see one more rate hike year. The announcement, which was accompanied by plans to reduce the balance sheet caught investors by surprise sending the dollar sharply higher. However since Wednesday’s announcement, the greenback has been unable to extend its gains and instead ended the week slightly higher against the Japanese Yen, British pound, Canadian and Australian dollars, flat versus the euro and lower against the New Zealand dollar. In the week ahead, the main driver of currency flows should be politics. General elections will be held this weekend in Germany and New Zealand and sometime in the coming week, more details on U.S. tax reform is expected. In addition investors should be watching U.S. – North Korea tensions as the recent name calling could spiral into something worse that could rattle the FX market.
The Federal Reserve breathed new life into the U.S. dollar this past week by confirming that they see one more rate hike year. The announcement, which was accompanied by plans to reduce the balance sheet caught investors by surprise sending the dollar sharply higher. However since Wednesday’s announcement, the greenback has been unable to extend its gains and instead ended the week slightly higher against the Japanese Yen, British pound, Canadian and Australian dollars, flat versus the euro and lower against the New Zealand dollar. In the week ahead, the main driver of currency flows should be politics. General elections will be held this weekend in Germany and New Zealand and sometime in the coming week, more details on U.S. tax reform is expected. In addition investors should be watching U.S. – North Korea tensions as the recent name calling could spiral into something worse that could rattle the FX market.
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