Forex Marketz Daily Forex News – Fully Markets Update
The U.S. dollar is trading near a three week high during the Asian trade session. Traders are expecting that the global central banks will start fresh stimulus programs as economies slow. There was also an improvement with risk appetite sending risk assets higher as government bond yields moved higher.
Yields on Treasuries moved higher off three year lows as traders went back, cautiously, into at risk assets. They are hoping that central banks will offer more stimulus as the German and Chinese economies show signs of slowing.
In the benchmark USD/JPY exchange rate, the dollar was flat at 106.62 yen. The dollar had gained for three sessions in a row as this exchange rate recovered from a seven month low near 105 yen.
The Swiss franc was also trading lower. The USD/CHF currency exchange rate was trading higher as the dollar is trading near a two week high neat 0.9820.
The EUR/USD exchange is trading flat at 1.1081 which is near a two week low at 1.1066 set on Friday.
The AUD/USD exchange rate was down by 0.1 percent to trade at 0.6757.
Forex Traders Support the Dollar as Yields Rise thanks to Better Sentiment in the Markets
Risk appetite was generally better during the Asian trade session. Traders are hoping that Germany will stop using their balanced budget rule to boost spending. They are also hoping for more reform out of China in regards to rates which will lower corporate borrowing costs.
Traders are also turning their attention to the annual Federal Reserve economic symposium at Jackson Hole, starting Thursday and the FOMC minutes scheduled for Wednesday.
At Jackson Hole a lot of focus will be on Fed Chairman Jerome Powell’s comments on monetary policy. The Fed might not be in a rush to begin a new easing cycle.
