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Currency Market Analysis

Dec 13, 2017 | Currency Market Analysis

Global Themes

Fasten your seatbelts: USD faces roller-coaster ahead of Fed, CPI and more

The US dollar continued its recent recovery overnight.

Ongoing market optimism – seen in higher share prices and stronger commodities – has boosted the USD this week.

In the very near term, a series of major economic events, including the US Fed and US inflation, could result in a volatile 48 hours for the USD.

Big bounce

The USDSGD returned to three-week highs.

The euro fell after a speech from European Central Bank president Mario Draghi passed without any major policy news. A disappointed market sent the euro lower.

The British pound fell while the Japanese yen climbed.

FX roller-coaster

FX markets are likely to see their last major swing of volatility for 2017 over the next 48 hours with a non-stop procession of key economic events.

Of course, the US Fed will be critical, with the central bank likely to raise interest rates into the 1.25% to 1.50% zone.

Otherwise, a massive run of data is due over the next two days, including Australian jobs, US inflation and retail sales, and central bank meetings from the UK, Eurozone and Switzerland.

Placing orders is one way to take advantage of this likely volatility and potentially achieve a more attractive rate. Speak to your Western Union Business Solutions representative for more information.

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