Dollar near One-Year High

The dollar hovered near a one-year high versus major peers on Thursday, following a two-day surge amid expectations for a tapering of Federal Reserve stimulus from November and a possible interest rate hike in late 2022.

The safe-haven greenback also saw a bid on worries the Fed could start to tighten into a period of slowing global growth and persistently high inflation, and perversely did well amid an impasse in Washington over the U.S. debt ceiling that threatens to plunge the government into a shutdown.

The dollar index, which measures the currency against a basket of six rivals — stood at 94.336, little changed from Wednesday, when it hit 94.435 for the first time since late September of last year.

The dollar bought 111.86 yen, easing slightly after reaching 112.05 overnight, a level not seen since February 2020.

The euro was little changed at $1.1602, holding near Wednesday’s 14-month low of $1.15895.

Speaking at a European Central Bank forum on Wednesday, Fed Chair Jerome Powell, ECB President Christine Lagarde and Bank of England Governor Andrew Bailey said they were keeping a close eye on inflation amid a surge in energy prices and the persistence of production bottlenecks.

Today’s events include more high-impact events from the US.  The times below are GMT+3. 

Have you trading charts ready!

Thursday 30th September

15.30 – US – Final GDP Price Index q/q, & Unemployment Claims

Potential instruments to Trade: USD Crosses. 

17.00 – US – FOMC Member Williams Speaks

Potential instruments to Trade: USD Crosses. 

18.00 – US – FOMC Member Bostic Speaks

Potential instruments to Trade: USD Crosses. 

19.30 – US – FOMC Member Evans Speaks

Potential instruments to Trade: USD Crosses. 

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