{"id":113652,"date":"2017-09-27T10:06:07","date_gmt":"2017-09-27T14:06:07","guid":{"rendered":"http:\/\/countingpips.com\/?p=113652"},"modified":"2017-09-27T09:06:51","modified_gmt":"2017-09-27T13:06:51","slug":"greenback-higher-ahead-of-trumps-tax-speech","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/09\/greenback-higher-ahead-of-trumps-tax-speech\/","title":{"rendered":"Greenback higher ahead of Trump\u2019s tax speech"},"content":{"rendered":"
September 27, 2017<\/div>
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Article by ForexTime<\/a><\/p>\n

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The Dollar made its presence known across the currency markets on Tuesday, after hawkish comments from Federal Reserve Chairwoman Janet Yellen, bolstered expectations for another US rate hike in 2017.<\/p>\n

Investors who were anticipating higher US interest rates, cheered after Yellen stated it would be \u201cimprudent\u201d to keep monetary policy on hold until inflation is back to 2%. \u00a0Yellen also said that she thinks \u00a0depressed inflation, witnessed in the States this year, is \u201cprobably temporary and will likely reach the central bank\u2019s golden 2% target over the next few years\u201d. With hawkish statements from various Fed policy makers \u00a0giving a thumb up to higher US rates, the Greenback has regained some of its mojo.\u00a0 Dollar bulls are making an appearance and with the Fed fund futures showing an 83% probability that they will raise rates in December; a further upside is on the cards.<\/p>\n

It is remarkable how swiftly the Greenback has returned to favour this week but it underscores how sensitive the currency has become to monetary policy speculation.<\/p>\n

From a technical standpoint, the Dollar Index bounced back to life on the daily timeframe, with bulls steamrolling through the 93.00 resistance level on Wednesday. A breakout above 93.50 may open the gates to 94.00.<\/p>\n

Trump\u2019s tax plan back in focus<\/strong><\/p>\n

A sense of anticipation can be felt across the financial markets ahead of President Trump\u2019s tax proposal in Indiana later today. Although some information has been leaked that corporate tax may be lowered to 20% from 35%, market players are still likely to closely scrutinize the speech for further details on tax reforms. If legislation is passed this year, this should boost sentiment towards the US economy and support the Dollar further.<\/p>\n

Currency spotlight \u2013 EURUSD<\/strong><\/p>\n

The mighty Euro extended losses against the Greenback during Wednesday\u2019s trading session, as sellers exploited the political uncertainty in Europe and the dollar staged a comeback. With the Dollar roaring back to life amid rising rate hike expectations and political uncertainty in Europe pressuring the Euro, could the EURUSD bears make a return in Q4? Prices are currently trading below 1.1750 as of writing, with the downside momentum likely to encourage sellers to target the 1.1680 support.<\/p>\n

From a technical standpoint, the bullish trend on the daily charts was invalidated when prices breached and closed below the 1.18320 higher low. Sustained weakness under 1.1680 should open a path towards 1.1500.<\/p>\n

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Commodity spotlight \u2013 Gold<\/strong><\/p>\n

Sellers were given the green light to send Gold prices lower on Tuesday, following Yellen\u2019s hawkish comments at Cleveland. With expectations mounting over the Federal Reserve raising US interest rates in December, Gold, which is zero-yielding, is likely to come under renewed selling pressure. Bears remain in control below $1300, with further downside expected as the Dollar continues to appreciate. From a technical standpoint, the yellow metal is coming under increasing selling pressure on the daily and weekly charts. Previous support at $1300 may transform into a dynamic resistance level, that may encourage a decline towards $1280.<\/p>\n

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Disclaimer:\u00a0<\/strong>The content in this article comprises personal opinions and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/em><\/p>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Article by ForexTime The Dollar made its presence known across the currency markets on Tuesday, after hawkish comments from Federal Reserve Chairwoman Janet Yellen, bolstered expectations for another US rate hike in 2017. Investors who were anticipating higher US interest rates, cheered after Yellen stated it would be \u201cimprudent\u201d to keep monetary policy on hold […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-113652","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/113652","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=113652"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/113652\/revisions"}],"predecessor-version":[{"id":113654,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/113652\/revisions\/113654"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=113652"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=113652"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=113652"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}