FOMC member James Bullard, who has moved markets more than once, did it again: he dismissed the US dollar’s effect on the economy. His description of a stronger dollar on the economy as “marginal.
His comments contributed to a stronger greenback.
EUR/USD is trading in the lower end of the range, around 1.1313. Bullard also referred to the euro, saying that the ECB’s QE is likely to weaken the euro further.
Special focus: EUR/USD finally falls out of range – more to come?
GBP/USD is trading under 1.55, after already having reached 1.15550 earlier in the day. USD/JPY is climbing towards 119. AUD/USD is sliding back down below 0.79. Earlier it managed to defy gravity: rise despite weak Capex numbers. USD/CAD is at 1.2470, rising from below 1.24 earlier in the day.
He also says that the Fed should remove patient from March policy statement and clear the way for a rate hike and that employment may be below 5% in the second half of the year.
In October he hit the USD when he expressed worries.
Data out: US jobless claims rise to 313K, core CPI 1.6% – USD stronger
Bullard continues after the data is out, and says that it is stronger than expected.
We soon have a big load of economic indicators from the US including the Fed’s two mandates: jobless claims and CPI.
More: Despite Setbacks, Stay Strategically Bullish On USD – ANZ
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