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