EYES ON DRAGHI

“Near term, the dollar path of least resistance is down.”

 The dollar came under pressure as traders eye the Federal Reserve’s timetable for raising interest rates, while Trump struggles and inflation remains subdued.

Recent remarks from Fed boss Janet Yellen indicating the bank will concentrate on prices have tempered rate expectations in recent weeks.

The euro broke above the US$1.15 mark for the first time since last June, with eyes on the European Central Bank’s policy meeting later on Thursday.

While ECB chief Mario Draghi is not yet expected to announce any tightening measures, there is speculation it will begin winding down its stimulus programme as the eurozone economy improves.

EYES ON DRAGHI

“The current market discussion suggests September ECB or even (central bankers’ US gathering at) Jackson Hole will be the platform to  announce the APP easing,” Stephen Innes, Head of Trading  OANDA Asia, said in a commentary.

“The market believes there is no coincidence in Draghi’s appearance at Jackson Hole,” he added.

Channel News Asia via AFP

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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