The dollar hovered below a 10-month peak against several major currencies on Thursday. Mixed views from the Federal Reserve tempered the rally after encouraging U.S. growth data. The dollar index last traded at 81.386 after increasing as much as 81.545, a high from last September, reports Reuters.
The greenback traded higher across the board at 1.34 against the euro and 103 against the yen.
On Wednesday the Fed confirmed it would be raising interest rates no time soon, even as it upgraded its assessment of the U.S. economy and expressed some comfort that inflation was increasing toward its target.
Junichi Ishikawa, market strategist at IG Securities in Tokyo said that any selling that resulted from the Fed meeting, "is likely to be temporary. It gave a fair view on the economy and despite expressing concern about the labor market, it took note of declining unemployment. Most important of all, it made a more confident assessment on inflation," according to Reuters.
For the remainder of 2014, the Fed should provide a more supportive position for the dollar as it continues to move to a less dovish policy. However, the markets are expected to want to take a timeout ahead of the NFP regardless, reports Forbes.
Risk Disclosure
The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter (“OTC”) products or swaps are made on behalf of StoneX Markets LLC (“SXM”), a member of the National Futures Association (“NFA”) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI does business as Daniels Trading/Top Third/Futures Online. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI.
Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.
© 2021 StoneX Group Inc. All Rights Reserved
