Yesterday, the head of FOMC Yellen told that “gradual approach to hikes particularly appropriate in light of subdued inflation”.
Mrs . Yellen also made a very important hawkish comment: Fed should be wary of moving too gradually.
So, dollar is rolling in buyers’ love. USD Index formed a local highs at the August, 23 levels at 93.50. The yield for the two-year Treasury note surged to its maximum from November, 2008 at 1,47%, also providing support to USD.
Considering that today’s durable goods orders were pretty good with revisions to the upside we expect dollar to continue working his way forward against all the majors and gold .
Markets are waiting for Trump and the long-awaited news on the tax reform. But, the US President used to make much sound but little actions in the past.
Anyways, we expect the retracement in case of disappointments from Mr. Trump to be short-lived and the current strength of the dollar may become a sustained trend.