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Dollar Rebound Extends as Markets Await FOMC Minutes (News: 05/07/17)

Today's press

  • Dollar's rebound extends today as markets are awaiting FOMC minutes. The key to watch is any hint on the next move of Fed. That is, whether Fed will hike rates in September and start shrinking the balance in December, or reverse. Or, Fed would indeed do nothing in September. Currently, fed fund futures are pricing in less than 20% chance of a September hike. Also, odds for federal fund rates to hit 1.25-1.50% and above in December is less than 60%. Technically, the greenback is staying near term bullish against Yen. But Dollar is holding below near term resistance against Euro, Sterling, Aussie and Canadian, and stays bearish.

  • Benoît Cœuré, a member of the ECB’s executive board, said that so far, a change of policy has not been discussed. This does not sound like earth-shattering news but serves as a setback after Draghi’s Sintra Speech. There, the President of the ECB talked about the need to begin removing stimulus and sounded optimistic in general.

  • Investing.com - The pound slid to the days lows on Wednesday after data showing that growth in the dominant UK service sector slowed to its lowest in four months in June.

  • With the Central Bank of Nigeria (CBN) sustaining its foreign exchange intervention in the real sector for importation of key raw materials, the manufacturing sector’s raw materials inventory index grew for the third consecutive month to close at 52.3 points.

  • Pakistan’s rupee plunged the most in nine years, after the central bank was said to have devalued the currency as South Asia’s second largest economy showed signs of stress ahead of elections next year.

  • Cryptocurrency enthusiasts are aware of the PBoC’s interest in digital currencies. The institution has intervened in Bitcoin affairs on multiple occasions. It now appears the PBoC Digital Currency Research Institute is up and running. The facility is located near Deshengmen, Beijing. It is quite interesting to see a bank officially acknowledge digital currency research.

  • The euro remains far from achieving one of the chief aims of its political founders: to challenge the dollar as the sole global currency.

  • A SET of special notes to celebrate the Currency Interchangeability Agreement between Singapore and Brunei has been launched to commemorate 50 years of cooperation between both countries.

  • Ten years since the Bank of England last raised interest rates, policy makers are warning Britons to prepare for the next one.

Next trading day's important events

Forex quotes:

  • USDJPY: 113.43
  • EURUSD: 1.1323

Indices:

  • S&P 500: 2427.25
  • NASDAQ: 6122.68

 



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