Focus turns to FOMC, dollar slips, euro up on German data

17 September, 2013

Currency markets are slowing down in anticipation of a major risk event of the year, which is the much anticipated Federal Open Market Committee announcement on Wednesday. Many investors are focusing on what the Fed will say and whether it will decide to taper stimulus and by what amount. 

Any large reduction to the current $85 billion a month asset purchase program, say more than $10 billion, will move markets, but may minimal amount will unlikely disrupt markets. The dollar is being weighed down by this bond purchase program, so any signal the Fed will begin scaling back on this will help the dollar appreciate.

Today USDJPY was directionless between a range of 99.05 and 99.30 yen as investors prefer to wait on the sidelines before the FOMC meeting, since this pair will be the most affected by any Fed announcement.

In other news, the main economic data during the European session was the German ZEW index on investor confidence. The index hits its highest level since April 2010 showing that Europe’s largest economy has a brighter outlook its economy as well as for the overall Euro zone economy.

EURUSD rose to a session high of $1.336, gaining 0.2 percent from the session open of $1.3342.

Sterling was hurt by lower UK inflation data today, which raises the likelihood of interest rates remaining low. 

GBPUSD fell to a session low of $1.5884 after hitting  an early session high of $1.5935.

Coming up in the US session, data will be released on US inflation as well as on the US housing market.

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...

In the past 24 hours Bitcoin has gained 0.85% and reached $3604.52831013. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 1.5351% and is now at $1.1563. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -4.32% and is now at $118.544487996. Have the most popular cryptocurrencies compared online 24/7.

Top Brokers offering Forex Market Analysis

Forex Currencies Forecasts

Top 10 Forex Brokers 2019

# Broker Review
5FIBO GroupFIBO Group83%
10FP MarketsFP Markets69%