Speculation that the changing of the guard at the Fed will lead to a more hawkish chief has continued to lend support to the greenback that closed higher on Tuesday. Markets are expecting an announcement to be made before early November as Yellen’s term expires next February.
Support for the USD inevitably dragged the Euro lower and we saw the EURUSD currency pair to a 1 week low of 1.1736 throughout Tuesday’s session – the currency pair closed a 4th consecutive day in decline.
Realtimeforex.com’s Tradertip expects support ahead of yesterday’s lows (around 1.1735) to then procede above 1.1799 unless we see a breach lower of 1.1704.
This morning ECB president Draghi is expected to speak in Frankfurt – his words may have a bearing on where the Euro may be heading next.
GBP’s performance still looks rather mixed this morning. Yesterday comments by BoE officials were interpreted as dovish and led to some losses for the GBP. Today we have more data out of the UK namely Claimant Count Rate and ILO unemployment rate.
Later today the US Fed releases its beige book, if the survey points towards an improving situation it may lend support to the buck.
