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Dollar holds gains as oil shock eases, Fed in focus

“Fed Reserve Chairman Jerome Powell has clearly broadcast his intention to cut rates, so some analysts warn that the dollar could actually bounce if the Fed eases policy as expected” writes Midwest Communications Inc for 95kqds.com. The dollar traded at 108.10 yen on Wednesday, close to a seven-week high of 108.37 yen.”If there are no surprises from the Fed, the speculators will have to give up their dollar shorts.The chaotic moves in money markets and late-day swings in U.S. federal funds futures mean the CME’s tool shows about a 51% chance that the Fed will cut rates by 25 basis points on Wednesday.”Speculators are already excessively short in the dollar,” said Yukio Ishizuki, foreign exchange strategist at Daiwa Securities in Tokyo.
 
Source: 95kqds.com



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