The Dollar Rally Gets Fresh Ammunition From Central Banks
- Greenback set to extend gain vs euro as central banks diverge
- 1.15 euro-dollar level is key, say Schwab and ABN Amro
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Currency traders looking to Jerome Powell and Mario Draghi for direction are getting the clearest signals yet that the dollar is set to extend its gains versus the euro.
That bet is being fueled by a divergence between the Federal Reserve chairman’s hawkish stance Wednesday and the European Central Bank president’s dovish posture Thursday. The disparate policy paths and contrasting fundamental trends in the U.S. and Europe are setting up a test of the key $1.15 level for the euro-dollar exchange rate in the weeks ahead, according to strategists at Charles Schwab & Co. and ABN Amro Group NV.