{"id":60353,"date":"2014-09-15T07:19:17","date_gmt":"2014-09-15T11:19:17","guid":{"rendered":"http:\/\/countingpips.com\/?p=60353"},"modified":"2014-09-15T07:23:44","modified_gmt":"2014-09-15T11:23:44","slug":"dollar-gains-traction-as-interest-rates-move-higher","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/09\/dollar-gains-traction-as-interest-rates-move-higher\/","title":{"rendered":"Dollar Gains Traction as Interest Rates Move Higher"},"content":{"rendered":"
September 15, 2014<\/div>
\r\n<\/div><\/div>

Article by ForexTime<\/a><\/p>\n

Market risk is very high this week as there are several events that could generate volatility within the capital markets. \u00a0The outcomes of the FOMC meeting and the Scottish referendum will dominate, although ongoing geopolitical tensions and possible upheaval in the Mid-East and Ukraine have the potential to create a market that whipsaws.<\/p>\n

The possibility of a hawkish outcome from the Fed, and a \u201cyes\u201d vote for Scotland to leave the U.K. have weighed heavily on bonds worldwide. Global bond yields posted their largest 2-week increase in over a year. Concurrently, U.S. and European equities broke recent winning streaks of at least 4-weeks, while the Asian equity index has had its worst losing streak in about four years. Asset markets are likely to remain vulnerable to further selling pressure this week.<\/p>\n

OECD cuts growth forecast for the largest developed countries, with Eurozone growth now seen at just 0.8% this year, versus 1.2% expected back in May. The forecast for the U.S. was cut to 2.1% from 2.6% expected previously. The organization warned that \u201cthe bullishness of financial markets appears at odds with the intensification of several significant risks\u201d and that \u201ccontinued slow growth in the euro area is the most worrying feature of the projections\u201d. The forecasts for Germany, France and Italy were cut to 1.5%, 0.4% and -0.4% respectively.<\/p>\n

Market participants now expect the FOMC to drop the \u201cconsiderable time\u201d language from the policy statement. Both hawks and a few doves have suggested it\u2019s time remove the date-dependent commitment as the economy nears the growth and inflation goals. The one big hurdle to a shift in language, however, is Fed Chair Yellen, who still worries about the labor market, housing, and prices, and fears the bearish effects or rising rates.<\/p>\n

The USD\/JPY currency pair continued to move higher, as the greenback gains traction from higher interest rates. \u00a0The yield differential continues to move in favor of the greenback, pushing the currency pair to 6-year highs. \u00a0Momentum on the currency pair remains positive with the MACD printing in positive territory with an upward sloping trajectory. \u00a0The RSI is printing a reading of 79, which is well above the overbought trigger level of 70 and could foreshadow a correction.<\/p>

\r\n
\r\n

Free Reports:<\/p><\/div>\r\n

\r\n

<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

\r\n
\r\n
\r\n

<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

\r\n<\/div>\r\n

\r\n
<\/div>\n

\"jpy-091514\"<\/a><\/p>\n

 <\/p>\n

\n

\"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

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Article by ForexTime Market risk is very high this week as there are several events that could generate volatility within the capital markets. \u00a0The outcomes of the FOMC meeting and the Scottish referendum will dominate, although ongoing geopolitical tensions and possible upheaval in the Mid-East and Ukraine have the potential to create a market that […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-60353","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/60353","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=60353"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/60353\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=60353"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=60353"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=60353"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}