European Session – Dollar eases ahead of Bernanke speech
July 10, 2013 12:03 pm
The dollar is broadly lower as investors are anticipating the Federal Reserve policy meeting minutes from the June meeting due later in the day as well as Fed Chief Bernanke’s speech.
During the European session the dollar eased against the euro and pound, giving some relief to these currencies that suffered huge losses on Tuesday. The dollar also weakened against the yen today.
The euro fell to a three-month low on Tuesday after European Central Bank policymaker Joerg Asmussen, made comments that record low interest rates were likely to stay for an extended period of more than 12 months.
EURUSD fell to a low of $1.2754 on Asmussen’s remarks, and rebounded slightly today as investors took some profits. The pair edged up to a session high of $1.2835. The euro was also down against the yen , with EURJPY touching lows at 127.99 yen.
The euro remains under pressure and will likely weaken against the dollar due to the contrasting central bank polices between the European Central Bank and the Federal Reserve.
Sterling was also given some relief today thanks to a broadly weaker dollar. Cable managed to erase some losses today and climbed to $1.4921.
Yesterday the pound was hammered down to a three-year low of $1.4812 after unexpectedly weak U.K. manufacturing data increased the likelihood of further easing by the Bank of England.
The yen gained against most counterparts today. USDJPY fell 1 percent to 99.76 yen, moving off a six-week high of 101.52 yen hit on Monday.
The dollar was also weaker against the Swiss franc, with USDCHF falling to 0.9674, off a six-week high of 0.9749 reached yesterday.
All eyes are on the upcoming U.S. session for the FOMC minutes. If the minutes and Bernanke reiterate that the Fed is preparing to soon scale back its bond-purchase programme in coming months, this will boost the dollar.
The dollar is broadly lower as investors are anticipating the Federal Reserve policy meeting minutes from the June meeting due later in the day as well as Fed Chief Bernanke’s speech.
During the European session the dollar eased against the euro and pound, giving some relief to these currencies that suffered huge losses on Tuesday. The dollar also weakened against the yen today.
The euro fell to a three-month low on Tuesday after European Central Bank policymaker Joerg Asmussen, made comments that record low interest rates were likely to stay for an extended period of more than 12 months.
EURUSD fell to a low of $1.2754 on Asmussen’s remarks, and rebounded slightly today as investors took some profits. The pair edged up to a session high of $1.2835. The euro was also down against the yen , with EURJPY touching lows at 127.99 yen.
The euro remains under pressure and will likely weaken against the dollar due to the contrasting central bank polices between the European Central Bank and the Federal Reserve.
Sterling was also given some relief today thanks to a broadly weaker dollar. Cable managed to erase some losses today and climbed to $1.4921.
Yesterday the pound was hammered down to a three-year low of $1.4812 after unexpectedly weak U.K. manufacturing data increased the likelihood of further easing by the Bank of England.
The yen gained against most counterparts today. USDJPY fell 1 percent to 99.76 yen, moving off a six-week high of 101.52 yen hit on Monday.
The dollar was also weaker against the Swiss franc, with USDCHF falling to 0.9674, off a six-week high of 0.9749 reached yesterday.
All eyes are on the upcoming U.S. session for the FOMC minutes. If the minutes and Bernanke reiterate that the Fed is preparing to soon scale back its bond-purchase programme in coming months, this will boost the dollar.
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