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US Session – Dollar pauses decline as markets digest news of Summers exit from Fed Chair bid

Posted on September 16, 2013 at 7:21 pm GMT

In the U.S. session on Monday,currency markets continued to focus on the news surrounding the exit of former Larry Summers from his bid for the Fed Chair. Of course his withdrawal now fuels speculation that the next frontrunner is Janet Yellen who unlike Summers, is more supportive of Bernanke’s quantitative easing measures. Summer was a critic of quantitative easing so a more dovish Yellen brings forth a view that the Fed will not put an early end to its accommodative [..]

Forex News – Janet Yellen versus Larry Summers

Posted on September 16, 2013 at 1:47 pm GMT

Markets were shocked on Monday after the news of Larry Summers pulling out of the race for the head of the U.S. Federal Reserve post. Summers, who is former U.S Treasury Secretary, was seen as the front runner for the post, set to replace outgoing Ben Bernanke in January 2014. Equity markets rallied while the U.S. dollar was sold off. Summers was viewed as an advocate for tighter monetary policy. Now his withdrawal means the next candidate coming to [..]

European Session – Dollar falls to 8-mth low versus pound after Summers out of Fed race

Posted on September 16, 2013 at 11:51 am GMT

The news of the day about Larry Summers withdrawal of his race for the Fed Chairman post has been the main driver of currency markets today. The dollar fell to a two-week low versus the euro and an eight-month low versus sterling. Summers was seen as more hawkish than other candidates and was likely to be in favor of scaling back stimulus so his withdrawal has now brought Janet Yellen as the next favourite, and she is more dovish on [..]

Asian Session – Dollar falls after Summers withdraws Fed Chief candidacy

Posted on September 16, 2013 at 5:56 am GMT

The dollar weakened against all its major counterparts in reaction to news that Lawrence Summers withdrew his bid to become Federal Reserve chairman. Summers was seen to be less “dovish” than his rival candidate Janet Yellen and was expected to be in favour of tapering. Therefore markets took the news of his withdrawal as a relief as Yellen is a well-known advocate of looser monetary policy to support the U.S. recovery and is now a favourite to succeed the current [..]

Forex News – US Consumer Confidence falls to five-month low

Posted on September 13, 2013 at 2:24 pm GMT

After disappointing U.S. Retail Sales data on Friday, the Thomson Reuters/University of Michigan consumer confidence index was released with not so good numbers as the index fell to the lowest in five months. This raises concerns about America’s consumers who seem to be feeling increasingly wary about the economic recovery. The Thomson Reuters/University of Michigan consumer confidence index fell in August from 82.1 to 76.8 this month. The number was less than expected and is also the worst reading since [..]

Forex News – USDJPY tumbles after disappointing US Retail Sales

Posted on September 13, 2013 at 1:36 pm GMT

The U.S. retail sales report for August was released today, showing a less than expected increase from July and the weakest gain in four months. According to the BLS report, growth in retail sales was a little softer with the headline number up only by 0.2 percent, compared to July’s 0.4 percent and lower than the 0.5 percent forecast. Meanwhile Core Retail sales, which excludes autos sales, rose by a mere 0.1 percent, which was less than the 0.3 percent [..]

European Session – Dollar advance as focus is on U.S. retail sales and Fed

Posted on September 13, 2013 at 12:17 pm GMT

The dollar is higher against most major counterparts in the European Session on Friday ahead of key U.S. data which is forecast to show retail sales rose in August. Any positive data will boost the chances of the Federal Reserve tapering dollar-weakening stimulus measures this month. Meanwhile, unconfirmed reports have been circulating that the White House is expected to appoint Larry Summers as the new Fed Chairman, replacing the outgoing Ben Bernanke in February. Summers is seen as being [..]

Asian Session – USDJPY pauses decline to rise back towards 100 yen

Posted on September 13, 2013 at 6:21 am GMT

The U.S. dollar paused its decline against the yen on Friday, with USDJPY rising in the Asian session to a high of 99.96 yen, moving off a low of 99.00 yen it reached yesterday. There remains alot of nervousness in the markets over the dollar and whether the Federal Reserve will begin tapering this month. Next week’s FOMC meeting will be closely watched. Any announcement that the Fed will begin to scale back its $85-billion a month bond purchases will [..]

US Session – Dollar falls as Fed meeting looms

Posted on September 12, 2013 at 6:58 pm GMT

Next week’s FOMC meeting is looming and investors are taking caution and not buying up the U.S. Dollar ahead of this major risk event. While there has been much speculation recently that the Federal Reserve will begin tapering this month, uncertainty about the timing and pace of Fed action grew after last week’s disappointing U.S. August employment report. Despite better-than-expected U.S. data that showed a drop in jobless claims to the lowest since 2006, the dollar was unable to gain [..]

European Session – Euro slips after disappointing Euro zone Industrial Production

Posted on September 12, 2013 at 11:35 am GMT

The euro was weighed down by disappointing Euro zone industrial production data for July. The numbers fell much below forecasts, in another sign that the region’s recovery remains fragile. A Eurostat report indicated a 1.5 per cent month-on-month decline in the month, significantly worse than the 0.1 per cent fall predicted. It rose 0.7 per cent over the previous period. Italian Industrial Output also disappointed, while in other data, Greek jobless hit a record high. EURUSD declined after the data, [..]

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