What was a tentative dollar correction could well turn into something more sustained after the latest minutes from the FOMC. The two main factors causing the change in dollar tone was a greater concern regarding the global economy (Eurozone in particular) and a view that the stronger dollar was also a headwind for the U.S. economy. Both have combined to leave the dollar nearly 1% weaker overnight on the dollar index and the hurdle to continuing the dollar rally from here has been raised. As we’ve mentioned previously, this correction is not before time and probably welcome by many, as the dollar was looking stretched on many metrics. It’s the yen and less so the euro where the correction on the majors has mostly concentrated, with emerging market FX seeing some gains vs. the dollar, but more from a momentum than value basis, with the South African Rand and Brazilian Real the main gainers so far this week. Overnight, the Aussie proved fairly resilient in the face of weaker than expected jobs data, which showed employment falling 30k (after revised 32k rise in the previous month), with the rate holding steady at 6.1%. For today, the Bank of England policy decision is announced at midday, but event risk from this is low given that the momentum for a rate increase has waned, even though two members of the monetary policy committee voted for higher rates last month. Otherwise, it’s just weekly claims data in the US, where both 4 and 12 week averages are set to move further below the 300k level, unless there is a significantly higher reading vs. the 295k expectation (last 287k). Further reading: EUR/USD Oct. 9 – Breaking higher on FOMC meeting minutes USD dives on FOMC minutes which mention the dollar FxPro - Forex Broker FxPro - Forex Broker Forex Broker FxPro is an international Forex Broker. FxPro is an award-winning online broker, offering CFDs on forex, futures, indices, shares, spot metals and energies, serving clients in more than 150 countries worldwide. FxPro offers execution with no-dealing-desk intervention and maintains a client-centric business model that puts customer needs at the forefront of our operations. Our acquisition of leading spot FX aggregator, Quotix, enables us to offer access to a deep pool of liquidity, as well as top-class order-matching and some of the most competitive spreads in the market. FxPro is one of only few brokers offering Negative Balance Protection, ensuring that clients cannot lose more than their overall investment. FxPro UK Limited is authorised and regulated by the Financial Conduct Authority (registration number: 509956). FxPro Financial Services Limited is authorised and regulated by the Cyprus Securities and Exchange Commission (licence number: 078/07) and by the South Africa Financial Services Board (authorisation number 45052). Risk Warning: Trading CFDs involves significant risk of loss. View All Post By FxPro - Forex Broker Daily Look share Read Next BOE leaves rates unchanged – GBP/USD stays high Yohay Elam 8 years What was a tentative dollar correction could well turn into something more sustained after the latest minutes from the FOMC. The two main factors causing the change in dollar tone was a greater concern regarding the global economy (Eurozone in particular) and a view that the stronger dollar was also a headwind for the U.S. economy. Both have combined to leave the dollar nearly 1% weaker overnight on the dollar index and the hurdle to continuing the dollar rally from here has been raised. As we've mentioned previously, this correction is not before time and probably welcome by many, as… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
