Here’s what happened.
· The USD ended last week taking a pounding against the other major currencies including the GBP, the YEN, EURO, Swissy and the CAD. It only performed better than the Aussie which had an even worst week
· That’s got the analysts confused as the US economy is currently outperforming most of the others
· And the Fed is tightening monetary policy while most other central banks are loosening
· Further to that we’ve had a very good Non-farm payroll for July
· And hawkish comments from Fed members on the next rate hike
· The only glitch has been a disappointing retail sales report
· So all this is clearly still not enough for investors who seem to be expecting more.
So what will it take for traders to back the greenback again?
· This Friday’s speech by Fed Chair, Janet Yellen, will be closely followed by traders
· US dollar bulls will be hoping for stronger indications on at least one rate hike before the year is out
· And though analysts don’t see one coming in the next couple of months, they are holding out on hopes for one in December.
Here’s what else to keep an eye on this week.
· On Thursday we have the German IFO report
· And also revisions to the Q2 GDP report out of the Eurozone.
