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By Associated FX Analysis Team

Kantox currency update: dollar picks up from long-term lows

Published September 12, 2017


The dollar bounced up sharply on Monday, to trim losses against the euro and the yen, buoyed by the improvement in risk sentiment as concerns about North Korea and the consequences of hurricane Irma start to recede.

The euro dropped from 2, ½ year highs, weighed by comments of ECB executive board member Coeure, who warned that euro strength might be an obstacle to accelerating inflation in the euro area.

EUR/USD: retreats below 1.2000. The euro dropped sharply on Monday, retreating from 2, ½ highs at 1.2090, and returned to levels below 1.2000 after ECB Coeure’s comments about the strength of the common currency. At London market opening times, the EUR/USD is trading at 1.1970.

GBP/USD rallies to 1.3200 ahead of the BoE. The pound remains bid, trading at 2-month highs near 1.3200 amid higher expectations of a hawkish turn on the next BoE monetary policy meeting due on Thursday.  At London market opening times, the GBP/USD is trading at 1.3185.

USD/JPY bounces up sharply and returns above 1.09.00. The dollar posted a strong recovery on Monday, after hitting 10-month lows, returning to the mid-range of 109.00. At London market opening times, the USD/JPY is trading at 109.55.

In the Calendar Today

At 08:30 GMT the most relevant indicator today will be the UK Consumer Prices Index. Inflation is expected to have accelerated again in August which will add pressure on the BoE ahead of its monetary policy meeting and might have a positive impact on the pound.

08:30 GMT      UK: Consumer Prices Index (YoY) (Aug)
Prev: 2.6%       Cons: 2.8%


Currency forecasts Q3


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