The difference between the Fed members stance makes the dollar to lost the momentum.
Lockhart said the Fed tends to raise interest rates in September, but wait 1-2 meeting and you will not see any action and a decision of the US economy. The policy maker is very supportive of a possible rate hike in September.
Federal Reserve Vice Chairman Stanley Fischer disagrees with the rate hike in September. Inflation is the major concern, however the employment rate is returning to the target level.
By China’s central bank slashed the central parity of RMB against the US dollar. Therefore, the US dollar strengthened while gold, silver & copper fell in value.
The Fed news agency correspondent Hilsenrath thinks that the Fed will be monitoring a decline in inflation expectations based on market expectations.
Fed Vice Chairman said that the United States is close to full employment, low inflation is temporary. Atlanta Fed President reiterated its stance on the September hike.
Technical view: After the China’s central bank devaluated the Yuan, the USD gained ground against most major currencies. On the h1 chart, the pair has been forming lower highs and lower lows indicating a further fall in the coming days. Until the pair close above a previous high at 1.3200, use every rise to sell following the trend. Before a further upmove, we expect to see first 1.2900, 1.2875, and 1.2850.
Intraday resistance seems at 1.3100, 1.3130, and 1.3185. Supprot is set at 1.3050, 1.3000, and 1.2950. Intraday selling takes place below 1.3050.
The material has been provided by InstaForex Company – www.instaforex.com