Breaking News

Dollar Gets Stronger

By Boris SchlossbergForexSep 17, 2019 05:50AM ET
Dollar Gets Stronger
By Boris Schlossberg   |  Sep 17, 2019 05:50AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Market Drivers September 17, 2019

GE ZEW slightly better

RBA hints at more easing

Nikkei 0.06% DAX -0.14%

UST 10Y 1.82%

Oil $62/bbl

Gold $1497/oz

BTC/USD (BitfinexUSD) $10,175

Europe and Asia:

EUR GE ZEW -22 vs. -33

North America:

CAD Manufacturing Sales 8:30

It was a quiet night in FX trade with a mishmash of small idiosyncratic stories driving majors today but the unifying theme in the market was the continued strength of the dollar ahead fo the Fed meeting tomorrow.

In Australia, the RBA minutes suggested that the central bank was open to further easing as policymakers remained concerned about the global slowdown in trade. Given the very weak Chinese manufacturing data over the weekend, those worries may be well-founded. Tomorrow the market will get a look at the AU employment data which up to now has been surprisingly robust given the marked slowdown in activity in China, but if the number misses the odds of another RBA cut will rise materially. The Aussie was one of the weakest pairs of the night slipping to a low of .6830 and could drop through the big figure by tomorrow if the Fed proves to be less dovish than the market expects.

The pound was also slightly weaker on the day dropping through the 1.2400 figure at the start of London trade as yesterday’s Brexit talks in Brussels turned into a political farce with Mr. Johnson refusing to come to the press conference after the talks went nowhere. With Parliament suspended the next big event for sterling will be the UK Supreme Court ruling on the constitutionality of that suspension. If the UK Supreme Court reaffirms the Scottish court ruling the pressure on PM Johnson to abandon the no-deal Brexit will ratchet higher and should prove to be a boost to the pound. In the meantime, it’s facing some profit-taking.

Elsewhere there is no major data in North America today but the theme of a strong dollar persists for the second day in a row as both USDJPY and USDCHF continue to be bid with the later once again slowly making its way towards parity. Part of the reason may be due to easing of risk-off flows and the 30bp rally in US 10Y from its lows last month, but there is also talk of dollar shortage in the interbank overnight lending market which may also be contributing to the move. Although the market is expected to be quiet ahead of the FOMC rate decision tomorrow the uptrend in the dollar could lift USDJPY through 108.50 and USDCHF through .9950 before the end of the day.

Dollar Gets Stronger
Dollar Gets Stronger

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email