FX Live Currency Market Update and Rates. Forex News Today

Daily FX Market Update

August 23, 2019

EUR/USD ranged from the mid to high 1.10’s overnight. The dollar rose to a three-week high against the euro and a one-week peak versus the yen on Friday ahead of a speech from Federal Reserve Chair Jerome Powell, with investors expecting him to express some reluctance to embark on a long rate-cut cycle after a chorus of Fed officials voiced a similar sentiment.

Powell will address the Jackson Hole symposium of central bankers at 1400 GMT on Friday, and traders are waiting to see how closely he allies himself with the hawks within the Fed.

Currency markets have in recent months been driven by a shift at global central banks to looser monetary policy as economic demand slows and trade disputes intensify.

Expectations that the Fed will cut rates at its next meeting in September have been fully priced into interest rate futures, but the currency market is likely to react if Powell’s comments do not match the dovish expectations. Money markets price in at least two rate cuts of 25 basis points this year.

“We think it is far more likely that Powell remains non-committal and disappoints those looking for shock and awe policy next month,” said Mazen Issa, senior FX strategist, at TD Securities.

In early morning trading, the euro was down 0.2% at $1.1061, after touching a three-week low of $1.1052, as the dollar gained and 10-year U.S. Treasury yields rose to a one-week high of 1.663%. An index that tracks the dollar against six major currencies was up 0.2% at 98.325.

The dollar was also up 0.1% versus the yen at 106.52, after hitting a one-week high of 106.73.

Fed officials kept preaching patience when it comes to easing. Cleveland Federal Reserve President Loretta Mester, who did not support the rate cut last month, told CNBC that if the economy continues to perform the way it has, the U.S. central bank “should keep things the way they are.”

Dallas Fed President Robert Kaplan said he does not see July’s easing as part of a rate-cutting cycle.

On Thursday, Kansas City Fed President Esther George and Philadelphia Fed President Patrick Harker said the Fed currently does not need to further stimulate the economy.

China’s offshore yuan stabilized at 7.0920 after dropping to an 11-day low of 7.1072 overnight as the People’s Bank of China lowered its official yuan midpoint to an 11-year low. The move was limited even though the set rate was nowhere near the lows traders expected.

Source: reuters.com





Stay in the Know

Keep on top of your business financials with the Paymentearth Market Report

See the Latest Market Update

Our Clients are Thrilled

There is a big move toward transparency in FX, but then it can be impossible to actually talk to a real person. With Paymentearth, they analyzed my business, gave me a fixed rate, and I can call them anytime. Frankly, they’re just straight-up, and I appreciate that.
CharlesOwnerBoston, Massachusetts
Almost any bank can help get a wire out, if that’s all you need. Paymentearth goes above and beyond for us though, and for a small business like ours, it makes a big difference to get such expert service. Of course, the rates are good too!
Paymentearth makes uploading an excel file of all my monthly payments very easy! I upload it on their site and I’m able to print a confirmation in minutes! When we combine this with transparency and knowing our exact spread, it is a no brainer!
We used to use three FX companies in order to keep the rate reasonable. With Paymentearth, they walked us through how to calculate the exact spread we get on every deal! A big time saver and a great way to do business!
My guy at Paymentearth took the time to explain how Forward Contracts work, and how they can help my business. My bank never gave me half the attention of Paymentearth.
JimPresidentNew Jersey
In my experience, banks are only willing to bend over backward if you’re a giant company. I’ve never felt that with Paymentearth. These guys are upfront, they’re knowledgeable, and they genuinely seem to value my business. It’s actually a pretty good feeling.
It’s not often that we need foreign cash, but it’s very convenient to order what we need from Paymentearth, and have one less thing to worry about before the trip.
ChrisTour Group OperatorCalifornia

International payments made easy!

Open an account and get started or give us a call: 800-566-0915