Morning Preview: Where is the USD Headed? - Forex News by FX Leaders

Morning Preview: Where is the USD Headed?

Posted Tuesday, September 26, 2017 by
Rowan Crosby • 1 min read

Morning All,

It’s been a mixed US trading session after Fed Chairman Janet Yellen came out and tried to talk down potential rate hikes. Despite what we heard from the FOMC update regarding interest rate increases, Yellen suggested that raising rates gradually is the appropriate strategy.

The comments slowed down the USD rally which had been showing some strength early on. Stocks remained mixed while it was the safe-havens that weakened the most. Yesterday in the signals brief I suggested that the risk-off assets like gold were due for a retrace, given it was largely the talk out of North Korea that had lead to the run-up. As such, Gold sold off after an initial spike.

USD is Turning Bullish

Despite the comments from Janet Yellen, the USD is starting to turn things around. It feels a bit like turning around a cruise ship, but nevertheless, it appears that we’re putting in a bit of a base.

It was evident in a number of the majors that the USD is on the up. The next key target to the upside is 94.00 which is certainly on the agenda.

DXY

DXY – 240 min Chart

Economic Data at a Glance

Wednesday

USD – Durable Goods & Pending Home Sales

Thursday

NZD – RBNZ Interest Rate Decision

EUR – Business Confidence

EUR – German CPI

USD – GDP

Friday

JPY – Unemployment

EUR – German Unemployment

GBP – GDP

EUR – Inflation

USD – Chicago PMI and Michigan Consumer Confidence

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About the author

Rowan Crosby // Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.
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