USD weakens, waiting for clues from Fed

USD weakens, waiting for clues from Fed

EconomyVN - USD dropped against most of the major currencies during yesterday's trading session as investors reassess the ability to raise interest rates by FED this year in the context of no new additional economic indicators might indicate clearly about the US economy's health.

The greenback strengthened as reported non-farm jobs in July announced on Friday (05th of August), much better than expected, increasing speculation that Federal Reserve will raise interest rates later this year . However, dollar's rally has stalled in the absence of catalysts in the context of the trading volume expected this week at a low level because many investors entered the summer vacation.

Many analysts predict FED will raise interest rates in December this year and believe that the Fed will not act before the President election in November. The speech of Federal Reserve Chairman Janet Yellen at the annual conference of the finance ministers and central bank governors in Jackson Hole, Wyoming on 26th of August are closely monitored by investors for more clues about when interest rates are raised.

The dollar continues to have 3 consecutive declines with a quite sharp fall on Wednesday supported the gold prices rallied in Asian, European and early US session. Nevertheless, then taking profit has braked the rise in gold prices and closed with modest gains. At End of yesterday session, gold prices rose 6 dollars to the world $ 1.346 / ounce.

The market today continues absence of information important impact. Economic data released today is the number of last week applications for US unemployment with the forecast of rising slightly from 269,000 to 272,000. As volume this week is forecast at a low level, data is launched today can impact on the evolution of the main currency pairs in the market.

Tonny Le

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