For a 5th straight day, the US Dollar Index edged higher, moving toward a record for best string of gains in nearly a year. That comes as a result of FX traders pricing in the likelihood of two additional rate hikes later this year. The most recent improvement in sentiment came in the wake of comments from James Bullard, head of the St. Louis Branch of the Federal Reserve, who said he foresaw an April rate hike. On Tuesday, the head of the Philadelphia Branch, Patrick Harker, said he hoped to see three rate increases this year. Any improvement in economic data will likely reinforce market sentiment on the rate hike possibility.
As reported at 9:38 am (GMT) in London, the US Dollar Index was trading at 96.273 .DXY, up 0.24%. In pairs trading, the greenback is also holding its own. The EUR/USD was $1.1169, down 0.13% while the USD/JPY was 112.8050 Yen, up 0.38%. Antipodean currencies were under pressure from another slide in oil prices which also helped the greenback. The AUD/USD was lower at $0.7501, down 0.41% while the NZD/USD was lower at $0.6683, down 0.38%.
Brexit Talk Heating Up
In the UK, analysts believe that the terror attacks in Belgium might have swayed sentiment in favor of the British withdrawal from the EU. That prospect has put some pressure on both the British Pound and the Euro crosses. The GBP/USD pair is currently trading at $1.4082, down 0.28% while the EUR/GBP was higher at 0.7934 Pence, a gain of 0.17%.
