All Articles Tagged - Fed

European Session – Dollar halts post-Fed tumble

Posted on December 13, 2012 at 1:01 pm GMT

Wednesday’s Fed inspired drop in dollar has fizzled and risk currencies unwound their post-Fed gains today. The dollar dropped sharply yesterday after the Fed announced a more accommodative policy by expanding its bond buying scheme by a total of $45 billion a month. Such a move tends to weaken the currency. The Fed also said it will maintain rates at record low near zero. The euro began to drift lower against the dollar from the Asian session to early European [..]

European Session – Dollar weakness ahead of FOMC

Posted on December 12, 2012 at 1:16 pm GMT

There is massive dollar weakness today ahead of the Federal Reserve policy meeting conclusion later when the Federal Open Market Committee (FOMC) is expected to announce a fresh round of bond buying as part of its efforts to stimulate the sluggish US economy. Quantitative easing will replace the previous program known as Operation Twist. This involves injecting a pre-determined quantity of money into the economy, which is speculated to be over $80 billion per month in bond buying .This “unsterilized” [..]

Commodities – Gold prices edge up ahead of Fed

Posted on December 12, 2012 at 8:52 am GMT

Gold prices edged up on Wednesday as the US dollar remains under pressure on expectations of easing by the Federal Reserve at a policy meeting that concludes later today. The Federal Open Market Committee (FOMC) is expected to announce further stimulus measures on the form of bond purchases in the amount of $45 billion. Such measures tend to have a weakening effect on the US currency and this will support gold as it is seen as a hedge against inflation. [..]

European Session – Euro boosted by German ZEW data

Posted on December 11, 2012 at 1:08 pm GMT

Risk sentiment in the European session was lifted by several market events especially with regards to the euro. Germany’s ZEW sentiment index for December was in positive territory for the first time since May indicating that investor confidence has improved and businesses believe that Germany will not face a recession. The index jumped to +6.9 versus -15.7 in November and above -12 forecast. Further boosting euro sentiment was a successful debt auction by both Greece and Spain who sold above [..]

Asian Session – Euro steady after Monti calms markets

Posted on December 11, 2012 at 7:16 am GMT

The euro edged up a little more against the dollar in the Asian session, moving further away from a near two-week low after plunging on Monday in reaction to news over Italian Prime Minister Mario Monti’s decision to resign. The PM’s decision came after former prime minister Silvio Berlusconi abruptly withdrew support for Monti’s technocrat government. Monti tried to calm markets and played down market fears over his decision to resign, saying there was no danger of a vacuum of [..]

Commodities – Gold rises on expectations of Fed quantitative easing

Posted on December 10, 2012 at 11:08 am GMT

Gold prices climbed higher on Monday to a one-week high on expectations that the US Federal Reserve will be easing further when it holds its policy meeting this week. Despite the higher-than-expected US nonfarm payrolls report on Friday, which led gold to dip briefly, the Fed is still likely to stay accommodative and continue its bond buying program. The Fed is expected to announce fresh bond purchases of $45 billion a month to replace Operation Twist. The latter program which [..]

Asian Session – Yen extends losses

Posted on November 15, 2012 at 6:59 am GMT

Yen weakened further on Thursday in the late Asian session to hit a 6-1/2 month low against the dollar. Accelerating the decline were comments by the head of Japan’s Liberal Democratic Party Shinzo Abe who, called for stronger monetary easing by the Bank of Japan to support growth and also wants the central bank to set interest rates at zero or below zero to enhance lending. Yesterday, Prime Minister Noda announced he will dissolve the parliament on Friday and called [..]

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