The US dollar fell against the euro today on speculations that the Federal Reserve will maintain its stimulus program. The currency edged higher versus the Great Britain pound and the Japanese yen. James Bullard, the President of the Federal Reserve Bank of St. Louis, said the Fed should continue to purchase bonds to stimulate the economy. William Dudley, the President of the Federal Reserve Bank of New York, said that policy makers were too optimistic … “Dollar Falls vs. Euro on Stimulus Speculations”
Month: May 2013
Japanese Mostly Lower Today
Japanese yen is mostly lower today, following an earlier rally. Comments from a government official sent the yen a little higher against its major counterparts, but now the yen is settling down into weaker territory as the fundamentals are considered. Economy Minister Akira Amari made comments earlier indicating that he thinks that the yen weakened too quickly. Even though the Japanese government and the Bank of Japan … “Japanese Mostly Lower Today”
Loonie Falls as Oil Drops and Fed Considers Reduced Easing
Canadian dollar is losing ground today, dropping as the the US Federal Reserve considers reducing its economic stimulus efforts. It’s also not helping the loonie that oil prices are dropping again. Dollar strength is the story across the board today, and that is affecting the loonie as well. The news that the Federal Reserve might reduce its quantitative easing program is contributing to dollar strength today, and the Canadian … “Loonie Falls as Oil Drops and Fed Considers Reduced Easing”
UK Inflation Slows, Pound Weakens
The Great Britain pound weakened today after data showed that inflation slowed last quarter more than was predicted by analysts, reigniting concerns about the UK economy. The Consumer Price Index rose 2.4 percent in the first three months of 2013 from a year ago, slowing from the growth of 2.8 percent in the fourth quarter of 2012. The median forecast was at 2.6 percent. Other reports today were also negative, … “UK Inflation Slows, Pound Weakens”
AUD/USD Falls After RBA Minutes, Losses Limited
The Australian dollar fell against its US peer today after the Reserve Bank of Australia released the minutes of its last policy meeting. The drop was small, however, and the currency gained against the Japanese yen at the same time. The RBA minutes were dovish and said: Conditions in the business sector, as assessed in surveys, generally had remained below average, possibly in part because the exchange rate had remained high despite lower export … “AUD/USD Falls After RBA Minutes, Losses Limited”
USD Index: Corrective Pull-back To 83.30/83.50 Within Larger Uptrend
The US Dollar index is trading lower from recent highs, and this now appears to be the start of a deeper corrective retracement. We are tracking a wave 4) pull-back now as we can already count a completed five sub-waves in red wave 3). As such, the current bearish waves are only temporary and should … “USD Index: Corrective Pull-back To 83.30/83.50 Within Larger Uptrend”
USD/JPY: Trading the US Existing Home Sales May 2013
The US Existing Home Sales indicator is released monthly, and provides analysts with a snapshot of the health and direction of the housing sector. A higher reading than the market prediction is bullish for the dollar. Here are all the details, and 5 possible outcomes for USD/JPY. Published on Wednesday at 14:00 GMT. Indicator Background … “USD/JPY: Trading the US Existing Home Sales May 2013”
Chilean Peso Drops on Weak GDP Growth
The Chilean peso fell yesterday as Chile’s economic growth trailed forecasts, reinforcing the view that the central bank will cut interest rates soon. Chilean gross domestic product expanded 4.1 percent in the first quarter of 2013, below the forecast of 4.5. The economy grew at the rate of 5.7 percent in the fourth quarter of 2012. The peso fell after the news against the dollar, which was weak itself. Market participants were speculating for some … “Chilean Peso Drops on Weak GDP Growth”
Dollar Recovers, Remains Vulnerable
The US dollar recovered a bit today after yesterday’s losses, but still remained soft amid speculations that the Federal Reserve may reduce its asset purchase program. Speeches of the Federal Reserve members will be the major theme of this week as market participants wait for signs of changes to monetary policy. On one hand, there are plenty of talks that the Fed will scale back its stimulus measures. On the other, … “Dollar Recovers, Remains Vulnerable”
Euro Firms Against US Dollar Ahead of EU Meeting
Euro is gaining ground today against the US dollar, firming ahead of the upcoming EU meeting. Even though there are expectations that Cyprus will need more support, and the situation with the eurozone is still a long way from resolved, the euro is finding support today. European policymakers are making it a point to contradict ideas of a breakup for the eurozone. With European Union policymakers insisting that the euro … “Euro Firms Against US Dollar Ahead of EU Meeting”