{"id":75864,"date":"2015-07-28T04:43:46","date_gmt":"2015-07-28T08:43:46","guid":{"rendered":"http:\/\/countingpips.com\/?p=75864"},"modified":"2015-07-28T07:23:27","modified_gmt":"2015-07-28T11:23:27","slug":"fomc-main-driver-for-dollar","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2015\/07\/fomc-main-driver-for-dollar\/","title":{"rendered":"FOMC main driver for dollar"},"content":{"rendered":"
July 28, 2015<\/div>
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Article by ForexTime<\/a><\/p>\n

The dollar firmed on Tuesday as cautious investors covered short positions ahead of the start of a two-day U.S. Federal Reserve meeting and as a continued slump in Chinese equity markets sapped appetite for riskier assets.<\/p>\n

The safe-haven yen was below the previous session\u2019s highs hit after Shanghai stocks tumbled 8.5 percent, their biggest drop in eight years, which helped pull down European and U.S. share markets.<\/p>\n

Losses continued into Tuesday\u2019s trading, even as Beijing pledged more support.<\/p>\n

The dollar rose about 0.3 percent on the day to 123.570 yen after falling as low as 123.010 yen JPY=EBS on Monday, while the euro was up about 0.2 percent at 136.92 yen after rising as high as 137.10 in the previous session.<\/p>\n

\u201cThe Chinese market dropped by about 8 percent yesterday, but the dollar\/yen dropped by just around 1 percent, which means many people in the FX market think the Fed is likely to hike as early as September so they don\u2019t want to sell a lot of dollars,\u201d said Masashi Murata, currency strategist for Brown Brothers Harriman in Tokyo.<\/p>

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\u201cThe market is risk-off, and yet the yen is not so strong,\u201d he said.<\/p>\n

Some investors believe the Fed\u2019s rate-setting Open Market Committee is laying the groundwork for hiking rates this autumn, which has underpinned the dollar in recent weeks.<\/p>\n

\u201cWe think FOMC will surprise on the hawkish side, provided a highly conditional lean to a 2015 lift-off is viewed as hawkish,\u201d Steven Englander, global head of G10 FX strategy at CitiFX in New York, wrote in a note to clients.<\/p>\n

\u201cContinued Chinese equity market weakness that spills over into U.S. asset markets in a major way would deter them,\u201d he said, although he added that current U.S. share levels were not low enough to trouble the U.S. central bank.<\/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

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Article by ForexTime The dollar firmed on Tuesday as cautious investors covered short positions ahead of the start of a two-day U.S. Federal Reserve meeting and as a continued slump in Chinese equity markets sapped appetite for riskier assets. The safe-haven yen was below the previous session\u2019s highs hit after Shanghai stocks tumbled 8.5 percent, […]<\/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-75864","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/75864","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=75864"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/75864\/revisions"}],"predecessor-version":[{"id":75876,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/75864\/revisions\/75876"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=75864"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=75864"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=75864"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}