Kathy Lien is Director of Currency Research at GFT, and runs KathyLien.com.
Kathy has a Bachelors degree in Finance from New York University. Kathy has written for Stocks and Commodities, CBS Market Watch, ActiveTrader, Futures and SFO Magazine. She is frequently quoted on Bloomberg and Reuters and has taught seminars across the country. She has also hosted trader chats on EliteTrader, eSignal, and FXStreet, sharing her expertise in both technical and fundamental analysis.
The US dollar continues to sell-off as traders wonder when the weakness will come to an end. The original hope was that retail sales would come in strongly to help the dollar stage a much needed relief rally.
Compared to its open price at the onset of US trading, the EUR/USD is basically unchanged. The market saw only a mild amount of volatility today despite two major events on the US calendar.
The Federal Reserve delivered its much expected 25bp interest rate hike today, bringing rates up to 5 percent. To the shock of the market, the Fed did not tone down the FOMC statement significantly.
If the US Treasury brands China as a currency manipulator and more neutral comments come from the US Federal Reserve suggesting that the Fed will really be closing the door on further rate hikes, we could easily see a 200 point move in the EUR/USD.
Although there are a lot of key global economic data due for release, politics will probably trump economics as the primary driver of the FX markets this week.
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