European Session – Euro eases against dollar, Fed minutes loom
August 21, 2013 11:59 am
The European session was a mixed bag and major currency pairs did not show any clear direction as the key risk event of the day looms.
Investors are being cautious ahead of the release of the July policy meeting minutes later today, which could reveal when the U.S. central bank plans to cut back on stimulus measures.
The Euro fell back from yesterday’s six-month high against the dollar. This week the single currency was propped up due to investors reallocating funds ahead of the Fed.
But the long term outlook is expected to become more bearish as European policy makers struggle to address the Euro zone sovereign debt crisis.
EURUSD is down about 0.5 percent since yesterday’s high, reaching as low as $1.3380 in the European trade today.
Sterling got a brief boost after than expected UK CBI industrial trends data. GBPUSD found tough resistance at $1.5694.
USDJPY rallied early in Europe after late trading on the Nikkei saw it recover the losses led by the headlines about the Fukushima radiation leak earlier today. The pair hit a high of 97.66.
Long dollar positions are likely post-FOMC minutes because the yen will likely weaken in the long term due to bold monetary policies by the Bank of Japan, contrary to the Fed.
The European session was a mixed bag and major currency pairs did not show any clear direction as the key risk event of the day looms.
Investors are being cautious ahead of the release of the July policy meeting minutes later today, which could reveal when the U.S. central bank plans to cut back on stimulus measures.
The Euro fell back from yesterday’s six-month high against the dollar. This week the single currency was propped up due to investors reallocating funds ahead of the Fed.
But the long term outlook is expected to become more bearish as European policy makers struggle to address the Euro zone sovereign debt crisis.
EURUSD is down about 0.5 percent since yesterday’s high, reaching as low as $1.3380 in the European trade today.
Sterling got a brief boost after than expected UK CBI industrial trends data. GBPUSD found tough resistance at $1.5694.
USDJPY rallied early in Europe after late trading on the Nikkei saw it recover the losses led by the headlines about the Fukushima radiation leak earlier today. The pair hit a high of 97.66.
Long dollar positions are likely post-FOMC minutes because the yen will likely weaken in the long term due to bold monetary policies by the Bank of Japan, contrary to the Fed.
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