US Dollar May Struggle to Extend Gains on Dovish Fed Comments

Talking Points:

  • Aussie Dollar gains, Yen weakens as risk-on mood prevails in Asia
  • US Dollar competence onslaught to extend liberation on dovish Fed comments
  • Are FX markets relating a forecasts so distant in Q3? Find out here

An upbeat mood on many Asian batch exchanges seemed understanding for a sentiment-linked Australian Dollar. On a other side of a spectrum, a anti-risk Japanese Yen declined. The MSCI Asia Pacific informal benchmark equity index combined 0.6 percent.

The New Zealand Dollar didn’t compare a Aussie cousin’s vigor, relocating broadly reduce in what competence have amounted to pre-positioning for this week’s RBNZ process meeting. The US Dollar corrected broadly reduce in a pierce that seemed visual following Friday’s swell in a arise of July’s upbeat jobs report.

From here, a still mercantile calendar in European trade hours is expected to concede a spotlight to comments from Federal Reserve officials. Remarks from St. Louis and Minneapolis bend presidents Jim Bullard and Neel Kashkari are due to cranky a wires.

Both policymakers error on a dovish side of a spectrum. That opens a doorway for tongue echoing a markets’ possess doubt about a odds of another rate boost in 2017, that competence import on a greenback. Follow-through seems doubtful until July’s CPI data is suggested on Friday however.

Retail traders design US Dollar gains. Find out here what this says about tangible cost moves ahead!

Asia Session

US Dollar May Struggle to Extend Gains on Dovish Fed Comments

European Session

US Dollar May Struggle to Extend Gains on Dovish Fed Comments

** All times listed in GMT. See a full DailyFX mercantile calendar here.

— Written by Ilya Spivak, Currency Strategist for DailyFX.com

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