European Session – Dollar rebounds; U.S. data in focus
July 12, 2013 11:51 am
The dollar received some relief from the sharp sell-off two days ago, as investors returned to buy it back at a better bargain. Many expect the greenback to remain bullish especially against the euro, due to the difference in performance between the economies of Europe and the U.S.
Despite Fed Chief Ben Bernanke saying on Wednesday that he would like to continue with stimulus a little longer until the U.S. labor market improves, it is expected that the Fed will begin scaling back on quantitative easing much sooner than the European Central Bank.
The euro is more likely to remain under pressure due to the ongoing debt crisis, and recent political problems in Portugal, while Greece still remains a sticking point.
EURUSD moved further away from Thursday’s three-week high of $1.3205 and eased down to a low of $1.3022 before the U.S. Session began.
Sterling also edged lower today, unable to maintain the upward momentum of the last couple of days as there are stronger expectations that the Bank of England will continue with quantitative easing longer than the Federal Reserve. The U.S. central bank will exit ultra loose monetary policy much sooner, and this is helping buoy the dollar.
GBPUSD has been steadily declining from yesterday’s high of $1.5220, opening in Europe at $1.5170 and slid to $1.5090.
The dollar is up half a percent against the yen so far today, with USDJPY hitting as high as 99.47 yen.
The Australian dollar was down over 1 percent against the greenback, with AUDUSD down to $0.9037.
The Aussie is under pressure as investors await data from China on Monday, with GDP data excepted to show 7.7 percent growth. China is a major trading partner for Australia so a recent run of disappointing data has weighed on the AUD.
In the upcoming U.S. session, investors await the University of Michigan consumer sentiment data. Improved data will be positive for the dollar.
The dollar received some relief from the sharp sell-off two days ago, as investors returned to buy it back at a better bargain. Many expect the greenback to remain bullish especially against the euro, due to the difference in performance between the economies of Europe and the U.S.
Despite Fed Chief Ben Bernanke saying on Wednesday that he would like to continue with stimulus a little longer until the U.S. labor market improves, it is expected that the Fed will begin scaling back on quantitative easing much sooner than the European Central Bank.
The euro is more likely to remain under pressure due to the ongoing debt crisis, and recent political problems in Portugal, while Greece still remains a sticking point.
EURUSD moved further away from Thursday’s three-week high of $1.3205 and eased down to a low of $1.3022 before the U.S. Session began.
Sterling also edged lower today, unable to maintain the upward momentum of the last couple of days as there are stronger expectations that the Bank of England will continue with quantitative easing longer than the Federal Reserve.
The U.S. central bank will exit ultra loose monetary policy much sooner, and this is helping buoy the dollar.
GBPUSD has been steadily declining from yesterday’s high of $1.5220, opening in Europe at $1.5170 and slid to $1.5090.
The dollar is up half a percent against the yen so far today, with USDJPY hitting as high as 99.47 yen.
The Australian dollar was down over 1 percent against the greenback, with AUDUSD down to $0.9037.
The Aussie is under pressure as investors await data from China on Monday, with GDP data excepted to show 7.7 percent growth. China is a major trading partner for Australia so a recent run of disappointing data has weighed on the AUD.
In the upcoming U.S. session, investors await the University of Michigan consumer sentiment data. Improved data will be positive for the dollar.
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