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Markets Waiting for Yellen & Draghi

FX markets entered a "wait & see phase" with low liquidity this morning as investors are awaiting policy clues from Chair Yellen and President Draghi. USD is up against Japanese Yen but lost some ground to Sterling which is correcting higher. Dollar also lost a bit to AUD and CAD.
I expect Chair Yellen to send a mildly hawkish message which should be very supportive for American dollar. The most anticipated however is ECB President's speech that will take place in the afternoon US time and alre…
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No Pullbacks To Join The Dollar Buying Party

The dollar buying continues with no significant pullbacks to join the happy party. This is especially evident in USD/JPY which went from 111.60 all the way to 114.55 without any stops and there were only very meaningless pullbacks not exciding 40 pips. How do you join the dollar long happy party in such environment? I would love to buy the pair at 113.20 but for now there is no signs it might travel there. Perhaps today before Yellen's speech event we'll see some retrace on profit taking. In the…
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Markets Are Waiting for Yellen

Dollar has halted its rally for now and the markets are awaiting fresh clues from Janet Yellen during her
congressional testimony today and tomorrow. Euro, British pound and yen rebounded against the US dollar modestly during the Asian session and will most likely advance a little more ones London trading opens. One noticeable thing that happen in early hours of trading was the fact that antipodean currencies(especially AUD) have not made too much advances even though the Chinese economic data …
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Next Week Trade Ideas

Listed below ideas assume that US dollar will rise modestly before Yellen's Congressional testimony on Tuesday & Wednesday. Ideally, I would like to buy the dollar lower when other currencies rise a little on Monday and have these trades a bit ahead in the green when before Yellen speaks. If she sound dovish all the trades should just brake even, but I'm hoping to hear some clues that markets will take as a signal for March rate hike. If so, buying US dollar should be quite profitable next week.…
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Dollar Mixed on Friday

The last trading session of this week brought mixed US dollar performance which appreciated further against European currencies(euro and the pound) but lost a some of its gains against yen. Overall the dollar is up for the week and I suspect we'll see a modest continuation of dollar strength at the beginning of next week. The biggest event next week will be Yellen's testimony in Congress which might give the dollar another(large) leg up, if she sounds optimistic and her comments give more chance…
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June rate hike still a possibility post FOMC Minutes.

OK, so the FOMC Minutes sounded dovish but let's not forget that they are nearly 4 weeks old.
Since then:
- the employment in the US has picked up including a rise in wages
- CPI improved
- we had a few FED members' speeches favoring sooner rather than later rate hike
So before deciding that dollar bull run is over for now, wait for Yellen's press conference next month (March 18-19). It will define dollar fate.
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