Will Yellen Spoil the US Dollar Party

Stephen Innes, senior trader at OANDA, is very cautious:

As the December rate hike probabilities are all but entirely price-subscribed, it comes down to a call on the future pace of interest rate hikes (dot plots) that the Fed projects for 2017. A more aggressive Fed lean will see the USD rocket higher, and while a less aggressive tack will not necessary spoil the party, it will certainly stall dollar momentum. Realistically, I cannot see how the Chairperson would not be anything but cautious, as the US and global economies shift from  a world of accommodative monetary policy excess to one of fiscal indulgence. So let’s not bring out the party hats just yet.


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

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes