- The US Dollar is working on fresh two-month lows after some comments this morning from FOMC Member, Rafael Bostic, and this opens a two-day period in which the focus will be on the Fed. A slew of Fed speakers are on the calendar for the next two days, highlighted by a speech at the Economic Club of Washington from FOMC Chair Jerome Powell at Noon ET Tomorrow. This could finally help the Dollar to set on a directional move should the Fed chair echo his Friday caution around future rate hikes.
Recovery continues across risk markets such as the Yen and US equities, each of which saw risk-driven moves show up in December. In US equities, both the Dow and S&P 500 have crossed-above key levels on the chart denoting the potential for further recovery, while USD/JPY has continued to find support at prior resistance areas, indicating that a re-test of the zone around 110.00 may soon be in the cards.