USD is still boosted by the interest rate outlook and the trade tension

Walid Salah Eldin

Active member
201 1
Despite the shocking falling of US durable goods in July by 1.7%, The European session is still watching tendency toward loading more risks with existing of the US indexes future rates into the green territory, after all of the Asian equities indexes rose up by the end of the week.

The odds of raising rates higher in US and the continued trading tension between US and China could help the greenback to get back some of what it lost this week versus its rivals amid the political uncertainty in US which put Trump in the most serious check since getting into his office in the White House.

The markets are waiting today for the Fed Chairman Powell’s scheduled comments at Jackson Hole Economic Policy Symposium from Kansas, after the Fed chief of it Esther George signaled yesterday that she is still favoring hiking the interest rate twice more this year on the current economic evolving in US.

Jerome Powell's comments come today, after another wave of criticism from the US president Trump of the current pace of tightening the monetary policy in US, as he sees this pace eroding his efforts to boost the economy saying that he was expecting Powell to be "cheap money man".

Federal Reserve Chairman Jerome Powell said earlier this month in his congressional hearing that the U.S. economy may not yet have reached full employment, while the risks facing the US economy are still looking "roughly balanced". It is the same sentence the Fed's kept since the previous chair woman Janet Yellen and it can be repeated again today.

Trump has complained also about currency manipulation by China and the EU which is looking part of the Trade War.

Trump preceded the running talks between US and China by saying that "there will be no concessions to China".

The 2 countries have exchanged during the talking imposing 25% tariffs on $16b worth of imports from both sides.

The markets became more priced in talks failure to achieve considerable progress and USD could find more demand on no-deal yet of that current running talking between US and China delegates.

As this failure makes the Greenback more acceptable to be appreciated versus the currencies of the major exporting economies to overcome the US tariffs adverse influences on their products.

The comments from Jackson Hole and the political stance in US beside the trade talks outcome can be fair enough to move the market next By God's will.


Have Good Trading Times

Kind Regards

Global Market Strategist of FX-Recommends

Walid Salah El Din
 

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