Daily Market Review 28/09/2015

The dollar rose against the other major currencies on Friday after Federal Reserve Chair Janet Yellen indicated that she still expects interest rates to rise later this year and as U.S. second quarter growth was revised higher. The dollar found support after Yellen said Thursday the U.S. central bank remains on track to raise interest rates this year. The comments reassured investors that monetary policy has not altered significantly following the Fed’s decision to hold off hiking rates earlier this month. An increase in interest rates would boost the greenback by making it more attractive to yield-seeking investors.

The greenback received an additional boost after data on Friday showed that the U.S. economy grew at a faster rate than previously estimated in the three months to June. The Commerce Department said gross domestic product expanded at an annual rate of 3.9% in the second quarter, up from an initial estimate of 3.7%. Consumer spending, which comprises more than two-thirds of U.S. economic activity was revised up to 3.6% from the 3.1% reported in August.

EUR/USD was at 1.1194 in late trade, off 0.33% for the day.

The yen and the Swiss franc were also lower against the greenback, with USD/JPY advancing 0.36% to 120.48 and USD/CHF up 0.3% to 0.9780.

Sterling was also weaker, with GBP/USD sliding 0.4% to 1.5178 in late trade.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last up 0.27% at 96.37.

In the week ahead, investors will be looking ahead to Friday’s jobs report for September. A strong reading would bolster expectations for a Fed lift-off before the end of the year.

Market participants will also be watching Wednesday’s euro zone inflation report amid concerns that the ECB could ramp up its monetary stimulus program.

Daily Technical Levels

Currency Strength & Weaknesses

Overall there is minor strength in the USD, JPY and CHF.
Overall there is minor weakness in the GBP, CAD and EUR.

Economic Calendar 28/09/15 GMT+2

VERY IMPORTANT: These are not specific trades. Do not blindly place trades in the directions given above. Use your own trading strategy and look at taking setups that occur in the same direction as my daily analysis.