Wednesday, March 29, 2017

US Fed Stanley Fischer Said, Two More Increases Fed Rate Hike seemed "about right"

Safe haven currency US Dollar bounces back as solid economic data, The dollar pulled away from 4-1/2-month lows against a currency basket on Wednesday as solid data backed expectations for more U.S. interest rate hikes this year, while another safe haven currency pound sterling was lower by concern about Britain's impending exit from the European Union. 

Still the most notorious Trump healthcare program against Obamacare, The healthcare stumble raised doubts that Trump would be able to carry out his fiscal stimulus and tax cuts, "I think the optimism about 'Trumponomics,' against the failure to pass the Obamacare reform bill, is still dominating the dollar/yen market," said Masafumi Yamamoto, chief forex strategist at Mizuho Securities in Tokyo. as reported from Reuters, safe haven currency the dollar to 110.11 yen , its lowest since Nov. 18. It last stood at 111.17 yen, up slightly on the day

"The dollar has been quite resilient, and this shows that optimism and hope among market participants remains, that some things will happen under the Trump administration," Yamamoto said. Meanwhile U.S. Federal Reserve Vice Chairman Stanley Fischer also gave the dollar a lift as he said in a television interview that two more increases to U.S. overnight interest rates this year seemed "about right."

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