Asian Session – US dollar holds gains ahead of FOMC and jobs data
October 30, 2013 8:00 am
The Asian session was quiet with most major currency pairs consolidating yesterday’s moves ahead of the Federal Reserve policy announcement later today. Markets have pretty much discounted the prospect of more easy money until well into next year.
The FOMC announcement is due at 2pm EST. The Fed is expected to maintain its current bond buying program at $85 billion a month in an effort to stimulate the US economy.
Meanwhile, US ADP jobs data are also due today, which could have some impact on the dollar.
The US dollar maintained its gains after a strong rally against the yen yesterday and having risen 0.78% since Friday, to trade just above 98.08.
The euro remained weak against the broadly stronger dollar. The single currency is also under pressure after comments yesterday by ECB Governing Council member Ewald Nowotny who said the ECB has few tools to weaken the euro’s exchange rate, which is weighing on some euro zone economies.
The euro edged lower against the dollar early in the session to reach 1.3732 before finishing the session flat. Just a few days ago the euro/dollar pair hit a 23-month high of 1.3831.
Against the yen, euro was little changed to end the session at 134.94.
Sterling eased down to a low of 1.6023 before ending flat.
The Australian dollar slid to 0.9457 early in the session before bouncing to 0.9494, with a 0.17% change. The aussie is still reeling from RBA Governor Glenn Stevens’ comments yesterday when he *s*aid the Australian currency was overvalued.
The Asian session was quiet with most major currency pairs consolidating yesterday’s moves ahead of the Federal Reserve policy announcement later today. Markets have pretty much discounted the prospect of more easy money until well into next year.
The FOMC announcement is due at 2pm EST. The Fed is expected to maintain its current bond buying program at $85 billion a month in an effort to stimulate the US economy.
Meanwhile, US ADP jobs data are also due today, which could have some impact on the dollar.
The US dollar maintained its gains after a strong rally against the yen yesterday and having risen 0.78% since Friday, to trade just above 98.08.
The euro remained weak against the broadly stronger dollar. The single currency is also under pressure after comments yesterday by ECB Governing Council member Ewald Nowotny who said the ECB has few tools to weaken the euro’s exchange rate, which is weighing on some euro zone economies.
The euro edged lower against the dollar early in the session to reach 1.3732 before finishing the session flat. Just a few days ago the euro/dollar pair hit a 23-month high of 1.3831.
Against the yen, euro was little changed to end the session at 134.94.
Sterling eased down to a low of 1.6023 before ending flat.
The Australian dollar slid to 0.9457 early in the session before bouncing to 0.9494, with a 0.17% change. The aussie is still reeling from RBA Governor Glenn Stevens’ comments yesterday when he *s*aid the Australian currency was overvalued.
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