Forex
Dollar Rises as Interest-Rate Differentials and Firm Data Boost Economy
The US dollar continues to rise against major currencies due to widening interest-rate differentials and firm US economic data.
The S&P Global PMI readings for September are expected to show the US economy outperforming the Eurozone, the UK, and Japan.
A US Treasury liquidity-support buyback in the 20-30 year sector may help steady long-dated yields after markets proved less responsive to a previous $6 billion buyback in the 10-20 year sector.
Derivative traders are recommended to position for continued US dollar strength by buying USD call options against the Euro, Yen, and British Pound.