The USD on the Move Ahead of the FOMC
Rowan Crosby • 1 min read
Friday was all about the USD, which has now rebounded strongly headed up by some decent retail sales data.
While the retail sales figure was below expectations, the result was not all that bad. It sent the US Dollar Index jumping higher and up into the 97.50 region. Earlier in the week, the doves had forced the Greenback down as low as 96.50, so by all accounts, the rebound has been an impressive one.
This week all the attention will clearly be on the FOMC and Jerome Powell and as it stands there is really no clear direction. The USD might well have risen on the belief that we won’t be seeing any further rate cuts, but the expectations are all over the place currently.
While the trade wars continue to weigh, all the focus will be on any guidance that Powell issues as to what the future might hold for interest rates.
Asian Session Wrap
The AUD/USD will be on watch this week as we wait to hear from the RBA in the form of the minutes of the last meeting. Of course, that was the meeting where rates were cut to 1.25% from 1.5%, but much of the talk has been around what will happen next. Governor Lowe will also be speaking on Thursday in what is sure to be a highly anticipated speech.
On Monday data is thin and there is not too much action of note in the Asian session.
Markets will be positioning themselves ahead of the FOMC, with the USD/JPY gaining some decent ground on Friday ahead of the BOJ.