Apart from UUP, WisdomTree Bloomberg U.S. Dollar Bullish Fund (USDU – ETF report) is another fund that is likely to play the hawkish comments by a few Fed officials (read: 3 Excellent ETFs to Play the Dollar Surge).
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The greenback initially gained on hawkish comments from New York Fed President William Dudley and Atlanta Fed President Dennis Lockhart, but dollar bulls were disappointed after the July Fed policy meeting minutes suggested the central bank was not in a hurry to increase rates.
Maybe, or better said “hopefully”, Fed Chair Janet Yellen’s Jackson Hole speech on Friday will make us a little bit wiser about how she, which implies of course the FMOC, sees the USA economy as well as the PCE, or price index for personal consumption expenditures, over the short to median term.
Ultimately however, the true signal will come from Fed Chair Janet Yellen, who is expected to speak this Friday at the Jackson Hole Central Bank symposium and may provide the clearest indication yet of Fed’s next policy moves. Midweek, revised Q2 GDP for France and the United Kingdom will be released and on Thursday, Germany’s Ifo survey for August will be reported.
In recent years, he said, the U.S. economy had had to confront the Greek debt crisis, a rise in the strength of the dollar, and sporadic financial turbulence. London’s FTSE 100 was up 1.3 points at 6,860.31.
USA stocks bounced around during Monday’s trading session but ended flat.
The dollar index, which tracks the greenback against a basket of six major currencies, was last up 0.07 percent at 94.58 after falling about 1.3 percent last week.
Oil prices start the week on the back foot as investors question the ability of producers to reign in “over” supply concerns at next months OPEC meeting.
Ultrashort Yen (YCS – ETF report) which measures daily investment results that reflects twice (200%) the opposite of the USA dollar price of the yen.
Brent crude settled down $1.72, or 3.4 percent, at $49.16 a barrel. West Texas Intermediate (WTI) is down -84c, or -1.73% at +$47.68 a barrel.
With the dollar finding support commodities are under pressure.
The Fed has met its employment goals and is close to meeting its inflation targets, Federal Reserve Vice Chairman Stanley Fischer said in a speech Sunday.
MSCI’s broadest index of Asia-Pacific shares outside Japan.MIAPJ0000PUS was down 0.2 percent, after losing 0.3 percent last week. Last week’s COMEX futures positions indicate that speculators have again cut their bullish positions.
– In the other precious metals, platinum was last at $1,107/1,114 per ounce, down $1.50, while palladium edged $2 higher to $704/712.
U.S. Treasury yields are on the move ahead of the open stateside.
Briggs took more notice of some of Fischer’s later comments in which, while discussing investor fears – such as negative interest rates – he says that is “something that the Fed has no plans to introduce”.
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U.S 10-years have backed up +4bps to touch+1.60% while shorter-dated yields have touched levels not seen since the U.K’s June 23 Brexit vote.
