Last Monday, the averages rallied strongly on tempered rate hike expectations, with the Dow Industrials and the S&P 500 Index settling at about a 7-week high. Apart from notching gains against the pound, the dollar also rose 0.15% against the euro changing hands at $1.1375, but fell 0.18% against the yen to change hands with the carry trade currency at JPY119.8200, resisting lows seen last week. Fed Vice Chairman Stanley Fischer, meanwhile, said on Sunday that the economy may be strong enough to merit a rate increase in 2015. "Today the focus is on inflation data in China and how Asian shares will react to that", said Osao Iizuka, chief dealer at Sumitomo Mitsui Trust Bank. Japan is shut for a holiday. Against the yen, the dollar dipped 0.1 percent on Wednesday to 119.60 yen JPY= , near Tuesday's low of 119.55, its lowest since October 2. The greenback rose 0.23 percent against the Malaysian ringgit in afternoon Asian trade Monday, while it was up 0.10 percent against the rupiah and 0.28 percent against the Singapore dollar. Over the previous two weeks, "we saw moves higher in emerging-market currencies; after all of the weakness over the summer, a correction there was expected", said Mazen Issa, senior currencies strategist at TD Securities. Prices will trade between $US50 and $US60 a metric ton over the remainder of this year, then drop to a range of $US45 and $US55 in 2016, BMI said in a report emailed Monday. The Australian dollar extended its longest streak of gains since March 2009 and New Zealand's currency touched its strongest since July. In early trade USA benchmark West Texas Intermediate rose 58 percent to $49.92 and Brent was up 40 percent to $52.86. The trading volume reflected 624.4 million shares at $5.24 billion. "We continue to forecast 70 cents for year-end, partly in anticipation of renewed market volatility out of the 17 December FOMC - whatever the outcome". Both by accident and design, central banks and regulators have been pursuing policies that lower real interest rates and term premia, enhancing the demand for all income yielding assets. "In the area directly related to the central bank, the flexibility of the exchange rate is a key element", he told participants. More individuals working and receiving a paycheck is a positive for future USA economic growth. We've been seeing Incredible consolidation at these 120 levels on the DollarYen chart... typically these kind of wedges are like a compressed spring and will explode at a few point. We've discussed many times that the standard disposition of commercial traders is value hunting. According to The Guardian on October 8, the Federal Reserve was nearly set on raising interest rates this September, but made a decision to delay it due to China's sluggish economic growth that could potentially harm the growth and inflation of the U.S. Global markets went into meltdown in August after China devalued its yuan foreign money, fanning worries concerning the state of the world's quantity two financial system, whereas merchants have been additionally on edge over the anticipated USA price rise. The Flemingsburg Gazette http://fleminggazette.com/5064/china-trade-and-uk-inflation-early-drivers-of-fx-market/

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