higher US dollar. Rising crude oil prices. Stocks mix. Ever lower interest rates.

The USD extends its gains and is the strongest of the major currencies. GBP and EUR are the weakest.

EURUSD is breaking below the low extreme that confined the pair in July and August at 1.0096. The swing low zone between 1.0096 and 1.0121 is now likely to stay below to keep the bears more in check.

GBPUSD is also making new lows and in doing so, breaking below the June low at 1.1933. In July, the price trades above and below this level with a low for the year at 1.1759. The low price has just reached 1.19218. The price is moving away from the natural support level of 1.2000.

GBPUSD drops below June lows

USDJPY hits new high since July 28

As the USD advances, rates remain negative but off their lows of the day.

Admittedly, the rates are at the lowest of the day, but still negative. The Fed’s George and Bullard talk more hawkish than inflation. Bullard has been the most hawkish of all Fed officials and is looking for a Fed target of 3.75% to 4% by the end of the year. The current rate is only 2.5%. So he sees 150 basis points more by the end of the year. There are 3 more meetings in 2022.

US equities remain mixed with the Dow down -0.24%. The broader S&P is up 0.12% and the Nasdaq is up 0.29%.

There is a 57% chance for 75 basis points at the September meeting.

Crude Oil is now up more than $3 on the day or 3.3%.

Fed’s Kashkari is due to speak shortly.

Leslie M. Gill