3 December 2014
Fed Governors Comment that a Mid-2015 Rate Hike is Still 'Reasonable'
The US dollar is extending its advance as the divergence theme moves into overdrive. The dollar has drawn close to JPY119.50. The euro has fallen to new lows near $1.2320, turning back from $1.25 on Monday. The Australian dollar briefly fell below $0.8390.
The main exception is sterling, which is holding its own after a stronger than expected service PMI. Although it slipped below yesterday's low, Monday's low near $1.5585 remains intact, and sterling is trading around 3/4 a cent above there near midday in London.