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September 18, 2017
|September 18, 2017|
|The US Dollar held steady in cautious trading overseas. Currency markets were bracing for tomorrow's start of the US Federal Reserve's 2 day policy meetings. The Fed is expected to announce plans to begin reducing its balance sheet, but is widely expected to keep interest rates unchanged. Currency markets are pricing in a more than 50% chance of a Fed rate hike by year end due to last week's strong US inflation report. Interest rate futures had been expecting a 40% rate increase prior to the inflation print. The Euro stayed in a narrow range. The US Dollar hit 8 week highs vs the Japanese Yen as improved risk sentiment kept the Japanese Yen on the defensive. 2 Year US Treasury yields also hit 8 week highs which weighed further on the Yen. The English Pound slipped from last week's 15 month highs against the greenback as traders booked profits ahead of British Prime Minister May's speech on Friday regarding the status of the Brexit negotiations, that have been postponed to the week of September 25th. Gold fell to 2 week lows as global equities surged. US stock futures indicate a higher open on Wall Street.|