LONG Dollar Index
Long idea based on the current low level and the expected FED policy.
At the moment the Dollar Index is in his very lows levels.
US equity market rebound going hand-in-hand with US Treasury yields rising;The inference is that US yields dropped on safe haven demand. Further improvement in risk appetite should boost US yields further, lifting the US Dollar -0.28%
-Yellen at Jackson Hole gives no confidence to would-be USD buyers, debt ceiling concerns mount.
The Fed I think is itching to get one more rate hike in this year, but the market has been discounting it," said Justin Lederer, Cantor Fitzgerald rate strategist. "We'll see next Wednesday what [Fed Chair Janet] Yellen and the statement have to say about it, and there's also tomorrow's retail sales which is a big number as well."
The Fed meets Tuesday and Wednesday, and it is expected to hold off on an interest rate hike but begin the process of shrinking its balance sheet. The Fed could issue new forecasts on interest rates and the economy, but currently it forecasts one more rate hike for this year.
Economists expect that hike to be in December, but the market has doubted the Fed will move based on months of persistently low inflation and mixed signals from Fed officials. The Fed has targeted a 2 percent inflation rate, and some Fed officials have said the lower inflation appears transitory.
"This is really going to complicate matters for the Fed. CPI is still 1.6 which is what it was in July. It's still too cool for the Fed, but there are some trends in here that are coming through from Harvey and Irma which will be hard to write off as one-time events," said Diane Swonk, CEO of DS Economics. The Fed has targeted a 2 percent inflation rate, and CPI has lately been lagging. My perspective will be for a very , very high dollar than the current price.
At the moment the Dollar Index is in his very lows levels.
US equity market rebound going hand-in-hand with US Treasury yields rising;The inference is that US yields dropped on safe haven demand. Further improvement in risk appetite should boost US yields further, lifting the US Dollar -0.28%
-Yellen at Jackson Hole gives no confidence to would-be USD buyers, debt ceiling concerns mount.
The Fed I think is itching to get one more rate hike in this year, but the market has been discounting it," said Justin Lederer, Cantor Fitzgerald rate strategist. "We'll see next Wednesday what [Fed Chair Janet] Yellen and the statement have to say about it, and there's also tomorrow's retail sales which is a big number as well."
The Fed meets Tuesday and Wednesday, and it is expected to hold off on an interest rate hike but begin the process of shrinking its balance sheet. The Fed could issue new forecasts on interest rates and the economy, but currently it forecasts one more rate hike for this year.
Economists expect that hike to be in December, but the market has doubted the Fed will move based on months of persistently low inflation and mixed signals from Fed officials. The Fed has targeted a 2 percent inflation rate, and some Fed officials have said the lower inflation appears transitory.
"This is really going to complicate matters for the Fed. CPI is still 1.6 which is what it was in July. It's still too cool for the Fed, but there are some trends in here that are coming through from Harvey and Irma which will be hard to write off as one-time events," said Diane Swonk, CEO of DS Economics. The Fed has targeted a 2 percent inflation rate, and CPI has lately been lagging. My perspective will be for a very , very high dollar than the current price.
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