FX Brief: Dollar Stages Relief Rally

A summary of news and snapshot of moves ahead of the US session.

  • As the US session begins, the USD is the strongest and EUR the weakest. With USD/JPY at resistance, could the greenback ease back from here or stage a more meaningful rally to close the week?
  • The dollar has been on the rebound ever since a Fed spokesman last night came out to issue a statement that NY Fed President John Williams did not intend to suggest that the FOMC would be making a large interest rate cut at the FOMC’s upcoming meeting this month. Earlier, Mr Williams had sent the dollar lower after delivering a rather dovish speech.
  • US stock index futures were holding near yesterday’s highs; silver was up for the fifth day; gold was in consolidation mode after breaking to a new 2019 high, and oil was coming off its highs after finding support on renewed tensions in the Middle East on the back of news that the US shot down an Iranian drone in Strait of Hormuz.
  • FOMC members Bullard (16:05 BST) and Rosengren (21:30) will be speaking later on today.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.