US Dollar Holds Stronger Ahead of Fed Speeches
The United States (US) dollar improved against its major trading partners early Wednesday ahead of a day of multiple Federal Reserve official appearances and the release of the Fed’s Beige Book.
There is a lineup of Federal Reserve’s official speeches while markets look ahead to other comments, including a speech by Fed Chairman Jerome Powell Thursday morning, before a quiet period begins Saturday and runs through the Sept. 20-21 Federal Open Market Committee meeting.
Wednesday’s schedule is light on data, with only the monthly trade report for July and the weekly Redbook retail sales reading yet to be released. Earlier Wednesday, the Mortgage Bankers Association said a surge in mortgage rates lowered mortgage applications in the week ended Sept. 2.
A quick summary of foreign exchange activity heading into Wednesday indicates that USDCAD rose to 1.3168 from 1.3151 at the Tuesday US close and 1.3122 at the same time Tuesday morning. READ: FOREX: U.S Dollar Gains Against Major Currencies
The focus of Wednesday’s schedule is the Bank of Canada announcement, where a 75 basis point rate increase is expected. Canada trade data are scheduled to be released followed by the Canada IVEY survey.
USDJPY continued its rapid ascent, rising to 144.719 from 142.7977 at the Tuesday US close and 141.7917 at the same time Tuesday morning. There are no Japanese data on Wednesday’s schedule. The Bank of Japan’s ultra-accommodative stance is expected to remain unchanged at its next scheduled meeting on Sept. 21-22.
USDEUR was little changed at 0.9904 from 0.9906 at the Tuesday US close and down from 0.993 at the same time Tuesday morning. EU employment growth slowed in Q2, data released earlier Wednesday showed, while EU gross domestic product growth accelerated modestly over the same period.
The European Central Bank is expected to raise rates by at least 50 basis points, with some looking for a 75 basis point increase, at its meeting Thursday. GBPUSD declined to 1.1446 from 1.1520 at the Tuesday US close and 1.1573 at the same time Tuesday morning.
UK home prices hit another record high in August after declining slightly in July, data released overnight showed. The Bank of England is expected to raise interest rates by another 50 basis points at its Sept. 15 meeting. # US Dollar Holds Stronger Ahead of Fed Speeches
