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FX Currencies Trade Dollar Looking Up

It is believed that the US Federal Reserve will raise interest rates later this month, and this has led to the rise of the dollar in the FX currencies trade. In fact, the dollar hit a 6 day high against the Euro and managed to hit a peak against the yen as well. Although, considering the fact that the European Central Bank will raise rates on Thursdays, it seems that the dollar will slump back down in the FX currencies trade by the end of the week.

In the business world, specifically that surrounding the FX currencies trade, it is extremely necessary that the Fed makes sure that inflation stays under control. With unemployment rates at an all time low, and job openings remaining stagnant, it seems that the only way the economy has to go is down. However, if proper action is taken by the Fed it seems certain that the economy will have the ability to rebound.

"In the very short term, quite clearly the dollar has had a significant lift from this consistent tone from Fed governors that we`ve seen since the start of the week," said Simon Derrick, head of currency research at Bank of New York. Assuming the yen and euro manage to remain consistent we may see the dollar increase in the next few weeks in the FX currencies trade.