Market Update

There's no doubt that upcoming speeches from the FED's Lockhart are key events of the day. Let us remind you that the dollar rally from last week has been caused by the FOMC member, who said that the Federal Reserve may hike rates as soon as September.

 

Lockhart is due to speak at a Q&A event at the Atlanta Press Club this evening (due 5.25pm BST). It will be interesting to know whether Friday's US payrolls report changed anyone's view.

 

However, his comments in the WSJ were not off-the-cuff, meaning it’s perhaps unlikely that he tones down or alters his comments today, particularly as we see the July labour report consistent with his view on the outlook for the labour market. 

 

Meanwhile the dollar has lost some of its ground, with the EURUSD climbing 30 pips after Stanley Fischer's comments in the Bloomberg TV.