The U.S. dollar traded at 14-month highs against a basket of major currencies early on Tuesday, benefiting from a run in sterling and after a Federal Reserve study sparked more buying interest. The dollar index climbed as far as 84.349, bringing into view the July 2013 peak of 84.753. A break there will take it to highs not seen since July 2010.
Giving bulls a boost, a research from the San Francisco Fed noted that investors are pricing in a lower trajectory for interest rate rises than members of the Fed itself.
“The market’s interpretation is that perhaps it had better re-price those expectations,” said Emma Lawson, senior currency strategist at National Australia Bank.
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.