6 FOMC Takeaways, but Evergrande USD Payment is Biggest Risk

By Kathy Lien Investors drove the U.S. dollar sharply higher after the Federal Reserve made it very clear that they are ready to reduce asset purchases. According to Fed Chairman Jerome Powell, it is “time to begin taper” and “if the economy progresses as expected, they may move at the next meeting.” But…

FOMC Preview: Will Fed Give Taper Start Date?

By Kathy Lien There are only 3 more Federal Reserve monetary policy announcements before the end of the year. If Fed Chairman Jerome Powell wants to give the market ample time to prepare for tapering asset purchases, they will need to make some type of announcement tomorrow. There’s no doubt that the topic…

Correlations Tight As Dow Meltdown Triggers FX Crash

By Kathy Lien This is one of the busiest trading weeks of the year and for this very reason, volatility in the stock market as measured by the VIX rose to its highest level in 4 months. The Dow Jones Industrial Average tumbled more than -900 points intraday, settling down -600. The S&P…

Dollar holds upper hand after retail sales boost

By Hideyuki Sano TOKYO (Reuters) – The dollar held near three-week highs against a basket of major currencies on Friday after a raft of strong U.S. economic data rekindled expectations for earlier policy tightening by the U.S. Federal Reserve. U.S. retail sales unexpectedly increased in August, rising 0.7% from the previous month despite…

Dollar sluggish as traders bide time before Fed meeting; kiwi jumps

By Kevin Buckland TOKYO (Reuters) – The dollar drifted near the middle of its range of the past month versus major peers on Thursday, as traders looked to next week’s Federal Reserve policy meeting for indications on how soon the U.S central bank will start to taper stimulus. The New Zealand dollar jumped…

Dollar drifts as soft inflation raises taper timing questions

By Kevin Buckland TOKYO (Reuters) – The dollar drifted within recent ranges against major peers on Wednesday after softer-than-expected U.S. inflation raised doubts about a taper of Federal Reserve stimulus this year. The dollar index stood at 92.632, little changed from Tuesday, when it dropped following the inflation data only to recover on…

FX: Top 10 Events to Watch this Week

By Kathy Lien September is a busy month. For investors, asset price movements will be determined by central bank rate decisions, employment reports and elections. There are no monetary policy announcements this week but inflation and spending reports from the U.S. and U.K. will shape expectations for next week’s Federal Reserve and Bank…

Dollar set for first winning week in three with Fed in focus

By Kevin Buckland TOKYO (Reuters) – The dollar headed for its first winning week in three on Friday after rebounding from a payrolls-induced sell-off, as investors continued to ponder the timing of a tapering of Federal Reserve stimulus. The dollar index, which gauges the greenback against six major peers, was little changed on…

Will ECB Look Past Decade High Inflation?

By Kathy Lien The European Central Bank has a monetary policy announcement on Thursday and many investors are wondering if euro will fall to the same fate as the Canadian and Australian dollars. Both currencies were sold after the rate announcements despite a tinge of optimism from their central banks. So far, the…

Dollar Edges Higher; Growing Risk Aversion Helps

By Peter Nurse Investing.com – The dollar traded higher Wednesday, benefiting from higher Treasury yields, caution ahead of the European Central Bank’s policy meeting and concerns over global growth. At 2:55 AM ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, gained 0.1% to 92.635,…