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Lockhart effect continues to linger supporting dollar

Yesterday Atlanta FED president Dennis Lockhart, made the day for Dollar when he hinted at his insistence of a rate hike.

Dollar is clearly in bid heading into today's ADP employment report to be released at 12:15 GMT.

According to Mr. Lockhart, US Federal Reserve would need good reason not to hike rates any time soon. While speaking for himself, Mr. Lockhart explicitly said that the bar is high for not acting. US economy has to tumble if FED chooses not to deliver rate hike.

Such comments have clearly pushed the dollar higher.

FXCM US dollar index, still trading within its tight range of 12060 - 11980. That is partially due to drag by Australian dollar, which is up thanks to no rate cut bias from Reserve Bank of Australia.

Dollar has gained sharply against Euro, which is trading at 1.085. Pound on the other hand has recovered some ground since yesterday.

Major focus remains on NFP report on Friday but today's ADP employment might set the mood till tomorrow.

 

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