Dollar rebounds after selloff fades and Fed in focus

17 September, 2013

The dollar selling frenzy that happened on Monday in reaction to the announcement of Larry Summers withdrawing his candidacy to be the next Fed chairman has eased and we have seen a reversal since the US session. Further gains in the dollar were made in Tuesday’s Asian session.

Market focus is now on the Federal Reserve policy meeting. The two-day meeting begins today and will conclude on Wednesday with hopefully some decision on when and by how much the Fed will being tapering. 

Expectations are for about $10 billion in cuts to the current bond buying program. The rally in the euro was short lived as the sell off in USD faded. EURUSD soon switched to a downside bias. In Asia the pair reached as low as $1.3324. Any upside move will likely be limited as we approach the FOMC meeting tomorrow.

GBPUSD was a little quieter in the session, trading sideways with strong support at $1.5887.

USDJPY opened in Asia at 99.05 and moved higher throughout the session to reach a high of 99.35 yen.

AUDUSD slipped lower ahead of the RBA minutes release to finally fall to $0.9284 after the release. 

In the upcoming European session the ZEW Indicator of Economic Sentiment for Germany will be closely watched. 


Source link  
Aussie declines despite shrinking Australian trade deficit

The Asian session was calm as the economic calendar was light and most investors were positioning ahead of key risk events later this week, primarily the US nonfarm payrolls report on Friday...

USD/JPY slips as Nikkei falls in risk-off market after disappointing China PMI data

The first full trading week of 2014 began today, with Japan opening for the first time after a two-week holiday...

Technical Analysis On Major Currencies By FXNET

The pair extended the positive trading, whereas it approached 61.8% correction at 1.3625


Euro Hits Fresh 1-Month High After German Inflation Data

The dollar rose above 102.00 yen for the first time since May 29, while the euro flirted with the key $1.36 handle and hit a new four-year high within striking distance of 139.00 yen...

Aussie Powers Through & Dollar Hits New 6-Month High Against Yen

The best performing currency during Thursday’s Asian session was the Australian dollar which jumped against its US counterpart after strong Australian business spending data. Private Capital Expenditure increased by 3.6% quarter-on-quarter despite expectations for a decline by 1.1%...

Sterling and Euro Outperform Vs US Dollar

The main currency of the day was the sterling which outperformed against the dollar and euro, as well as against the yen after being boosted by strong UK second quarter growth data...


Euro Steady Around $1.35

The euro was stronger today particularly against the dollar and the pound. While there were no economic data releases today from the Eurozone to explain the move, there were some headline news which affected sterling and dollar...

Yen Up Against Dollar After Weak US Data

The yen was supported by safe haven demand today after the release of a slightly dovish Bank of Japan policy meeting minutes. The minute from last weeks meeting showed some concern about Japans economic outlook and whether the central bank 2% inflation target could be met...

EUR/JPY Hits A New 4-Year High

The dollar remains bullish against the yen, while the euro hit a new four-year high against the Japanese currency in todays Asian session...

  


Share: