Dollar weighed down by dovish Fed member comments

September 24, 2013

The US dollar was unable so far to gain ground after its decline on Friday, especially against the Japanese yen. The US currency depreciated against most major G10 currencies on Monday but has mostly been directionless in the past two sessions.  

Lack of key data releases in the Asian session and lack of a catalyst has kept the currency subdued.

Central banker comments on Monday from key Fed policy makers on their dovish outlook for the US economy did not help matters. Bothe Atlanta Fed President and New York Fed President back the Fed’s decision last week to maintain stimulus and not taper.

Adding to the dollar woes is a looming debt ceiling, meaning that the US government could shutdown in less than two weeks unless Congress reaches an agreement to raise the ceiling.

The main “risk off” theme prevailing in the markets has benefitted the safe haven Japanese yen.

USDJPY decline sharply on Monday to a low of 98.65 where it consolidated throughout the Asian session today. 

Comments from ECB President Mario Draghi on Monday weighed on euro as he signalled that low interest rates will be maintained and he is willing to launch another LTRO program if necessary. (long term refinancing for banks)

EURUSD traded sideways in a very tight range just below the key psychological level of $1.3500. Focus will be on German Ifo business sentiment data later today.

GBPUSD retraced its small advance from yesterday, inching down to $1.6021.

Publication source
FxNet information  FxNet reviews

January 23, 2017
The Week ahead: Politics to take center stage
Donald Trump is finally in power, a new era has arrived, and his policy plans in the first couple of weeks will override fundamentals. Markets spent more than two months pricing in growth policies promises, lowers corporate taxes, and deregulations, now it is time to deliver as markets will no more move on words but actions...
January 23, 2017
Dollar opens weak as markets cautious on the new Trump administration
The U.S. dollar continued to extend the declines for what could a third consecutive day. On Friday, Donald Trump took office as the 45th President of the United States...
January 20, 2017
The dollar has settled moderately lower
Asian stock markets were mixed overnight, after U.S. and European shares closed in the red Thursday. Japan and mainland China bourses managed to move higher (Chinese GDP beat expectations at 6.8%)...

OANDA Rating
OctaFX Rating
Vantage FX Rating
FBS Rating
Orbex Rating
Z.com Trade Rating

UKoptions Rating
99Binary Rating
Dragon Options Rating
Empire Option Rating
Anyoption Rating
Migesco Rating