In a day marked with virtually no major macroeconomic releases, the US Dollar found support from both sides of the Atlantic. In Europe, various ECB officials were heard remarking that the European Central Bank's asset purchase program could be expanded to account for current conditions. In the US, St. Louis Federal Reserve President James Bullard noted that there was a chance of a rate hike in October during an interview while lambasting current market cheerleading. However, despite the currency markets reacting to the verbal talkdown, according to CME futures, the Fed Funds rate was pricing in a 50% probability of a rate hike in January 2016. For the near term, comments from the Fed and ECB officials highlighted the diverging monetary policies. EURUSD which has weakened notably since Friday, declined a further -0.88% yesterday to close at 1.1189.
Dollar Pares Losses
Daily Analysis - 22/09/2015