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Add Rosengren and Bostic to Fed officials who can see a quicker taper

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Forex news for North American trading on August 9, 2021

A trading day after the better than expected jobs report, Feds Bostic and Rosengren tilted more toward the early taper side. Fed’s Barkin was a little less convincing.

Bostic said that the economy could reach “substantial further progress” in another month or two.  Rosengren said the Fed “should begin slowing stimulus efforts by the fall”.  Barkin said that the Fed has made “substantial further progress” towards the taper benchmark on prices, but feels the focus should be on employment to population ratio. That ratio is lower than prepandemic levels (61.1% vs 58.4% currently), but he is still positive on the economy saying “he expects high level of spending for some time” and “demand does not yet seem dented by Delta variant”.

Those more hawkish view are joined by Fed’s Waller, Bullard, Kaplan and maybe a lesser extent Clarida.  Fed’s Brainard, Kashkari, tend to be more dovish, looking for more jobs recovery. Fed’s Powell, also expressed less rush after the FOMC decision last week (but before the jobs report on Friday).  

The dollar continued it’s move to the upside today after Friday’s surge after the jobs report.  The greenback is the strongest of the major currencies. The CHF is ending as the weakest today.  The USDCHF was the biggest mover (by far) with a change of +0.67%. The AUDUSD was the next largest mover at 0.33%.  

Forex news for North American trading on August 9, 2021

Looking at the USDCHF chart below, the price moved above a downward sloping trend line near 0.9180 level, and then moved above the a swing area near 0.9200 (from 0.9199 to 0.92026). It currently trades just above that level at 0.9206 just before the close. The next upside target for the pair in the new trading day would be up near 0.9220 to 0.92222.  

USDCHF

The AUDUSD is testing a swing area between 0.7327 and 0.73306 ahead if the July 28 low extreme at 0.73165.  

AUDUSD



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