{"id":94668,"date":"2016-08-23T06:43:43","date_gmt":"2016-08-23T10:43:43","guid":{"rendered":"http:\/\/countingpips.com\/?p=94668"},"modified":"2016-08-23T06:43:43","modified_gmt":"2016-08-23T10:43:43","slug":"the-greenback-shrugs-off-recent-hawkish-comments-oil-drops-further","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/08\/the-greenback-shrugs-off-recent-hawkish-comments-oil-drops-further\/","title":{"rendered":"The greenback shrugs off recent hawkish comments; Oil drops further"},"content":{"rendered":"
August 23, 2016<\/div>
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Article by ForexTime<\/a><\/p>\n

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The impact of hawkish comments from Fed speakers last week didn\u2019t last long with the U.S. dollar dipping against most major currencies early Tuesday.<\/p>\n

Fed\u2019s Vice-Chairman Stanley Fisher grabbed the headlines yesterday after providing an optimistic outlook on the U.S. economy saying that the economy is close to meeting the central bank\u2019s targets and that GDP growth is expected to pick up in coming quarters as investments recover from a surprisingly weak patch. His comments provided the dollar a boost on Monday to recover further from a 2-month low, however, markets seem not yet convinced on the path of normalising monetary policy and need confirmation from Chair Janet Yellen who is due to speak at Jackson Hole on Friday. Although she might provide a positive assessment on growth outlook, I\u2019m afraid that investors who are expecting more clarity on the timing of the next rate hike will be disappointed, and thus the greenback is likely to remain under some pressure on the short run.<\/p>\n

The Kiwi outperformed all major currencies, rising 0.8% against the U.S. dollar after RBNZ Governor Graeme Wheeler signaled that rates might not drop much further from current levels as ongoing cuts in interest rates would further inflame an already overheated property market. His speech was welcomed by carry traders who benefit from differentials in interest rates by borrowing a currency with low interest rates to buy a high yielding one. A break above 0.7341 (15-month high) could lead to further gains, but markets might be a little cautious ahead of Chair Janet Yellen\u2019s speech on Friday.<\/p>\n

Oil prices fell by more than 1% on both sides of the Atlantic after heavy losses on Monday. The impact of a production freeze agreement had been exaggerated over the past couple of weeks which sent prices from a bear into a bull territory in a matter of three weeks.\u00a0 Speculators who were the major players of the most recent rally might find little reasons to add to their bullish bets now as fundamentals don\u2019t seem to support further gains. Even if OPEC and other major producers like Russia agree to cooperate to freeze at current levels, this isn\u2019t likely to have a much positive impact on prices as output is already at record high. I expect to see some consolidation on the short run with Brent to trade within the $45-$50 range but volatility to remain high.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

Disclaimer: <\/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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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 impact of hawkish comments from Fed speakers last week didn\u2019t last long with the U.S. dollar dipping against most major currencies early Tuesday. Fed\u2019s Vice-Chairman Stanley Fisher grabbed the headlines yesterday after providing an optimistic outlook on the U.S. economy saying that the economy is close to meeting the central bank\u2019s […]<\/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-94668","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/94668","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=94668"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/94668\/revisions"}],"predecessor-version":[{"id":94680,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/94668\/revisions\/94680"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=94668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=94668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=94668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}