Asian Session – Yellen’s nomination as Fed Chair boosts US dollar
October 9, 2013 6:31 am
The dollar rebounded against the yen early on Wednesday as Asian markets reacted to news that a new Federal Reserve Chief will be nominated. Janet Yellen who is the current Vice President of the Fed will be a front runner to replace Ben Bernanke when he leaves in January.
Yellen’s nomination will be announced by US President Obama at the White House later today.
The news has given some relief to markets and gave investors a temporary break from concerns about the ongoing stalemate in Washington over the US debt ceiling as the US government shutdown enters its ninth data.
Yellen’s appointment will bring continuity in the Fed’s current monetary policies. A more dovish Fed Chair will mean tapering will come at a much later date. Most important for markets is that liquidity will continue, something which has been a key driver of markets since the financial crisis to help with the economic recovery.
The safe haven yen fell against the dollar, as USDJPY rose 0.6 percent to a session high of 97.43 from 96.82 yen.
A weaker yen helped buoy the euro, with EURJPY rising from 131.46 to 132.16. Meanwhile, investors are building up ahead of data forecast to show German industrial production increased in August .
EURUSD was down to the stronger dollar, falling to a session low of $1.3560. The pair had reached a session high of $ 1.3603.
The broadly firmer dollar also affected cable, as GBPUSD eased down to $1.6060 from a session high of $ 1.6120.
The dollar rebounded against the yen early on Wednesday as Asian markets reacted to news that a new Federal Reserve Chief will be nominated. Janet Yellen who is the current Vice President of the Fed will be a front runner to replace Ben Bernanke when he leaves in January.
Yellen’s nomination will be announced by US President Obama at the White House later today.
The news has given some relief to markets and gave investors a temporary break from concerns about the ongoing stalemate in Washington over the US debt ceiling as the US government shutdown enters its ninth data.
Yellen’s appointment will bring continuity in the Fed’s current monetary policies. A more dovish Fed Chair will mean tapering will come at a much later date. Most important for markets is that liquidity will continue, something which has been a key driver of markets since the financial crisis to help with the economic recovery.
The safe haven yen fell against the dollar, as USDJPY rose 0.6 percent to a session high of 97.43 from 96.82 yen.
A weaker yen helped buoy the euro, with EURJPY rising from 131.46 to 132.16. Meanwhile, investors are building up ahead of data forecast to show German industrial production increased in August .
EURUSD was down to the stronger dollar, falling to a session low of $1.3560. The pair had reached a session high of $ 1.3603.
The broadly firmer dollar also affected cable, as GBPUSD eased down to $1.6060 from a session high of $ 1.6120.
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