It enhances the dollar's interest rate appeal relative to the euro, pound and yen. |
It had an initial mild positive U.S. effect on the dollar ... Overall, it's not a significant move. |
It reaffirms the view that the U.S. economy remains on a solid growth track. |
It's been a whippy trading session with the big drivers being U.S. economic data and comments from the ECB. |
It's certainly a good time to go to Europe. |
Lighter-than-usual trading volumes, due to the Assumption Day holiday in Europe, facilitated the single currency's gains, |
Lighter-than-usual trading volumes, due to the Assumption Day holiday in Europe, facilitated the single currency's gains. |
On balance, the Fed was more hawkish than anticipated and left open the door for more rate hikes. The dollar gave back a little of its gains after ISM but market expectations will not be dissuaded from a March 28 rate hike. |
Ongoing fears of possible Bank of Japan intervention combined with renewed rumors of a possible downgrade of Japan's credit rating also weighed on the yen. |
Overall, in the short term this is not going to deter the Fed from continuing its measured rate tightening campaign, |
Since there was no expression of concern at the yen's strength, traders interpreted this as a green light to resume their yen buying, |
That was an upside surprise in the headline PPI index. That's going to keep the Federal Reserve on track in raising interest rates at an incremental pace, |
That was an upside surprise in the headline PPI index. That's going to keep the Federal Reserve on track in raising interest rates at an incremental pace. |
The data was pretty much in line with expectations. |
The Dollar/Yen remained hemmed in narrow ranges as traders were unsuccessful in their attempts to push the dollar through key technical resistance. |