All Articles Tagged - Fed

Asian Session – Dollar still under pressure despite positive data

Posted on June 20, 2014 at 6:42 am GMT

The dollar was attempting to stabilize from the post-Fed meeting selloff as the negative momentum weakened. The euro traded up to 1.3626 against the greenback, while dollar / yen dipped slightly to 101.89. The euro continued to advance against the yen at 138.79 while the Australian dollar was drawn back towards the 94 cent level against its US counterpart. The big question of course is whether the FX market will continue to sell the US dollar or whether for the [..]

Forex news – Fed staying the course disappoints dollar bulls, risk assets rally

Posted on June 19, 2014 at 1:35 pm GMT

The key risk events of the Fed policy meeting, statement, updated staff economic forecasts and the quarterly press conference by Janet Yellen, proved to be dollar negative as they sparked aggressive sales of the greenback. Given that there were few changes in the overall tone of Fed communication and the outlook for monetary policy, the disappointment by dollar bulls could be hard to explain. The market’s disappointment was probably due to the fact that despite some upbeat news on the [..]

European Session – Dollar remained weak despite forecast-beating jobless claims

Posted on June 19, 2014 at 1:35 pm GMT

The US dollar remained weak across the board today as a result of the Federal Reserve failing to deliver a more hawkish message in the FOMC statement on Thursday. The continued dovish stance of the Fed as well as of Fed Chair Janet Yellen pushed investors to sell the dollar. Even better-than-expected US initial jobless claims data today were not enough to convince market participants to buy back the greenback. The number of Americans filing new claims for unemployment benefits [..]

Asian Session – Dollar hit by Yellen’s pledge to continue easy policy

Posted on June 19, 2014 at 6:43 am GMT

The week’s big event, the Federal Reserve meeting, hurt the dollar but boosted risk assets, as Fed Chair Janet Yellen appeared ready to keep interest rates at zero for a “considerable” period following the end of tapering. The euro was trying to regain the 1.36 mark versus the US dollar following Yellen, trading around 1.3610, which was its highest in 10 days. Dollar / yen fell below the 102 level to 101.90 despite the positive risk sentiment. Sterling also benefitted [..]

European Session – Yellen and FOMC minutes grab market attention

Posted on June 18, 2014 at 1:30 pm GMT

The Federal Reserve is in the spotlight today, with all eyes being on the policy statement and a press conference by Fed Chair Janet Yellen later in the day. There are no surprises expected though from the Fed. The Bank of England policy meeting minutes were released today, showing the MPC vote on policy was unanimous. The minutes also noted some upside to GDP growth in the second half of the year. Apart from that the June minutes were not [..]

European Session – Dollar gains after US inflation beats forecasts

Posted on June 17, 2014 at 1:42 pm GMT

The US dollar was strong after data showed that inflation in the US inflation is moving closer to the Fed’s target. CPI (Consumer Price Index) rose the most since February 2013 in May and beat forecasts by increasing 0.4 percent after climbing 0.3 percent the prior month. The markets reacted positively to the data and resulted in the dollar rising to 102.18 yen from 101.95 before the data and off the day low of 101.80. Investors markets shrugged off data [..]

Asian Session – Euro steady at 7-week high ahead of ECB, dollar heavy after Yellen

Posted on May 8, 2014 at 6:50 am GMT

The US dollar remained weak after Fed chair Yellen’s dovish testimony to the Joint Economic Committee of the US Congress where she indicated a high degree of monetary accommodation remains warranted. She did however note that the Fed expects a decent pick up in economic activity in the second quarter. US 10-year Treasury yields remained low, keeping the dollar near a 7-week low against the yen and versus the euro. In other news overnight, China produced better- than-expected trade data, [..]

Asian Session – Dollar holds losses as Fed reiterates low rates to remain

Posted on May 1, 2014 at 7:02 am GMT

Chinese official manufacturing PMI numbers released today came in lower-than-estimates, underscoring weakness in the world’s second largest economy. The PMI figure rose to 50.4 in April from 50.3 in March, below forecasts for a bigger increase to 50.5. In other news, the Federal Reserve concluded its monthly policy meeting yesterday by announcing a further cut of $10 billion to its bond buying program. The Fed reiterated that it will keep interest rates close to zero for a considerable time. The [..]

European Session – Euro above 1.38 despite soft EZ inflation, dismal US GDP weakens dollar

Posted on April 30, 2014 at 1:35 pm GMT

The euro strengthened across the board despite below forecast Eurozone CPI numbers. The preliminary reading on headline inflation rose to 0.7% year-on-year versus 0.8% expected but above a previous 0.5%. Despite the softer number, it is unlikely that the European Central Bank will take action at its policy meeting next week. This view is expected to keep the euro supported until then. Meanwhile, Tuesday’s below-forecast German CPI prepared markets for today’s overall softer Eurozone CPI. There were other mixed data [..]

Asian Session – Yen rebounds, euro under pressure ahead of inflation

Posted on April 30, 2014 at 6:27 am GMT

The yen continued its rebound from yesterday’s lows on the back of month-end flows while the euro was also being tested following weaker-than-expected inflation numbers out of Germany. Today, Wednesday, 30th April, will likely prove one of the busiest days for forex news for months. First of all, 30 April is the end of the month and it is customary to see end-of-month flows and positioning that can affect the market. This was perhaps one reason that led the dollar [..]

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