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Hawkish Fed Boosts the Dollar

Today's markets

  • JPY - Policy Rate
  • JPY - BOJ Press Conference
  • EUR - ECB President Draghi Speaks

The Greenback gained against its major counterparties yesterday, as the FOMC signalled that a third rate rise this year was still on the cards. As expected, the FOMC kept rates on hold at 1 to 1.25 percent, to continue to support further strengthening in the job market and continue on the path to reach the two percent inflation. Fed Chair, Janet Yellen, also announced that the Fed would start the shrinking of its $4.5 trillion balance sheet in October.

Later this afternoon, ECB President, Mario Draghi, will be delivering the opening remarks at the European Systemic Risk Board annual conference. Across the pond, the US will be releasing the Weekly Unemployment Claims figure, expected to post 302k. The figure continues to be distorted by the Hurricanes hitting the East coast of America.

Tomorrow's markets

  • EUR - ECB President Draghi Speaks
  • CAD - CPI m/m
  • NZD - Parliamentary Elections 

Back in the UK, Teresa May is scheduled to deliver a keynote speech on Brexit in Florence tomorrow. The speech is reported to present a ‘open and generous offer’ to the EU. It is expected May might offer Britain to continue to pay the EU until when the budget period runs out in 2020, ensuring no EU country loses out from the changes to the current EU budget as the UK leaves.