The US Dollar Index touched its highest price in 7-weeks earlier today on growing speculation that the Federal Reserve Bank might raise its benchmark lending rate this month. Two FOMC members, specifically William Dudley and John Williams of the New York and San Francisco branches of the Fed, respectively, have both recently touted hawkish rhetoric. Williams, however, did say that that rate increase would be dependent upon the Fed meeting its dual mandate of full employment and price stability.
As reported at 10:36 am (GMT) in London, the EUR/USD was trading lower at $1.0534, down 0.36% and not far from the session low of $1.0526. The GBP/USD was trading relatively flat at $1.2371, down 0.04%; the pair has ranged from a session low of $1.2350 to a peak of $1.2404.
The USD/JPY was up 0.70% to trade at 113.645 Yen, nearing the session peak of 113.6600 Yen.
Trump Speech Fails to Excite
The hopes of a rate hike seem to be what is driving the Dollar’s direction today, as President Trump’s speech yesterday largely disappointed given that he was once again vague on details for his plans. Trump said that he would provide massive middle-class tax relief and was considering reforming the immigration system but specifics were not provided.