All Articles Tagged - Fed

European Session – Euro retreats from 1.39, dollar rebounds after PPI data

Posted on April 11, 2014 at 1:41 pm GMT

The euro failed to sustain the 1.3900 level against the dollar and fell 0.13% to trade at 1.3872 as the recent dollar selloff eased. German CPI data came in as expected and gave no reason to support the euro. The relatively low inflation rate (0.3% on the month) was a reminder of the risks of low inflation in the Eurozone. If the ECB eventually starts to take action (say through QE) in the coming months, then this will weaken the [..]

European Session – Dollar rebounds after US jobless claims fall to 7-year low

Posted on April 10, 2014 at 1:45 pm GMT

The dollar remained bearish today after coming under heavy selling from the dovish FOMC minutes on Wednesday that showed the Fed was to remain accommodative for longer-than-previously thought. An upbeat US jobless claims report today helped the dollar trim some losses. The number of Americans filing for unemployment benefits last week fell to the lowest level in seven years, decreasing by 32,000 to 300,000. This was less than the expected 320,000 claims. The dollar was hovering at three-week lows of [..]

Asian Session – Dollar weak after Fed minutes, yen gains on soft China PMI

Posted on February 20, 2014 at 7:41 am GMT

There was a flurry of news during the Asian session as well as overnight during the US session, which were generally downbeat and dampened risk appetite in the currency markets. This led to safe haven flows into the yen. The flash reading of the HSBC China Purchasing Managers’ Index (PMI) fell in February to a 7-month low of 48.3 from January’s final reading of 49.5, missing forecasts for a 49.5 reading. Anything below 50 signifies contraction, compared to an above [..]

Asian Session – Dollar supported as all eyes turn to Fed

Posted on January 28, 2014 at 7:47 am GMT

The risk-off sentiment in the currency markets has dwindled as the emerging market worries have waned for now and focus shifts to the Federal Reserve policy meeting on Wednesday. Expectations of continuation of Fed tapering has provided support for the dollar. In its last meeting in December, the Fed announced it will trim its bond purchases by $10 billion-a-month from its $85 billion program and it is expected to make further cuts at Wednesday’s meeting. After much volatility in currency [..]

European Session – Dollar rebounds as focus shifts to Fed

Posted on January 27, 2014 at 2:45 pm GMT

Currency markets began to digest the big moves occurring earlier in the day due to the emerging market sell-off and nervousness began to subside a little, allowing the dollar to recover from 2-month lows against the yen. The Japanese currency typically benefits from safe haven flows during times of risk aversion in the financial markets. Despite a broadly risk-off tone still lingering, there were no signs of panic and the 10-year US treasury yield rose for the first time in [..]

Forex News – Fed meeting minutes point to more tapering

Posted on January 9, 2014 at 1:14 pm GMT

The release of the minutes from the latest Federal Open Market Committee (FOMC) meeting on December 17/18 signaled that perhaps the market was underestimating the Fed’s willingness, if not to actually tighten soon, to reduce the amount of monetary stimulus. During the meeting, certain Fed Governors noted that the benefit from additional asset purchases seemed to be outweighed by certain significant and rising costs. These costs, according to participants in the meeting, were risks to financial stability as this easy [..]

Forex News – December taper chances higher following strong jobs report

Posted on December 6, 2013 at 2:38 pm GMT

[caption id="attachment_11856" align="alignnone" width="550"] US nonfarm payrolls, unemployment[/caption] The US November employment report, which was released today, again surprised on the upside just as October’s report did. Nonfarm payrolls grew by 203 thousand versus expectations of a gain of 180 thousand. October’s number was revised slightly lower to 200 thousand against 204 thousand initially reported. There were strong job gains in almost every category; from manufacturing (+27k), to construction (+17k), to retail (+17k) as well as the public sector (+7k). [..]

Forex news – The Fed keeps its printing presses on but will the dollar continue its decline?

Posted on October 31, 2013 at 9:32 am GMT

The news that the Federal Reserve left its policy unchanged during its 2-day meeting on October 29-30, was in line with market expectations. The Fed’s overall assessment is that since September, incoming information “generally suggests that economic activity has continued to expand at a moderate pace”. In addition, both developments in the labor market as well as on inflation, were seen in a positive manner by the Fed. Something that is a serious drag on the economy [..]

US Session – Dollar firms on short covering as Fed will keep pumping liquidity

Posted on October 30, 2013 at 8:47 pm GMT

Despite a weaker-than-expected ADP employment report for October and the Fed announcing it will continue with its monthly asset purchases of 85 billion dollars, the US currency managed to gain today. The dollar gained 0.13% against the euro to trade at 1.3731, while against the yen it climbed 0.38% to 98.61. Parsing through the policy statement, the Fed acknowledged that the fiscal policy stance was constraining growth, although overall it saw there was broad improvement in the underlying economy. The [..]

Asian Session – Dollar lower after Fed refrains from tapering stimulus

Posted on September 19, 2013 at 5:42 am GMT

The Asian session on Thursday was relatively quiet after the volatility caused in the prior US session when the Federal Reserve shocked markets by announcing it will hold monetary policy unchanged and will not taper. This surprised many market participants who had expected the Fed to begin scaling back on its $85 billion a month asset purchase program by at least $10 billion a month. In a press conference, Fed Chief Ben Bernanke reiterated that tapering is data-dependent and the [..]

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