U.S. Dollar Bolster Versus Japanese Yen
March 18, 2014 8:13 amVideo
Latest News
- EUR/USD and GBP/USD: Technical analysis on May 10 May 10, 2024
- Forecast for EUR/USD on May 10, 2024 May 10, 2024
- Forecast for GBP/USD on May 10, 2024 May 10, 2024
- Forecast for AUD/USD on May 10, 2024 May 10, 2024
- Outlook for GBP/USD on May 10. The British pound failed. Or it simply refused May 10, 2024
- Outlook for EUR/USD on May 10. The euro went up for no reason May 10, 2024
- The US dollar stumbled again May 10, 2024
- The euro got away with it May 10, 2024
- Video market update for May 09, 2024 May 9, 2024
- Analysis of EUR/USD pair on May 9th. Euro woke up after the Bank of England meeting May 9, 2024
- Analysis of GBP/USD pair on May 9th. Andrew Bailey did all he could May 9, 2024
- USD/JPY: Simple trading tips for novice traders for May 9th (US session) May 9, 2024
- GBP/USD: Simple trading tips for novice traders for May 9th (US session) May 9, 2024
- EUR/USD: Simple trading tips for novice traders for May 9th (US session) May 9, 2024
- Technical Analysis – GBPUSD retreats further after BoE’s decision May 9, 2024
- Technical Analysis – UK 100 index swings to all-time high May 9, 2024
- GBP/USD: trading plan for the US session on May 9th (analysis of morning deals). The pound continues to be held within the May 9, 2024
- EUR/USD: trading plan for the US session on May 9th (analysis of morning deals). The euro rebounded from 1.0726 May 9, 2024
- EUR/USD. May 9th. Bulls have exhausted their strength May 9, 2024
- GBP/USD. May 9th. Bulls fear Bailey’s “soft” rhetoric May 9, 2024
The dollar clinch surges from yesterday against the yen before the Federal Reserve begins a two-day assembly at which policy makers are expected to slash asset purchases which tend to bring down the USD.
The yen stayed down versus most of its 16 major counterparts on easing concern that Crimea’s vote to secede from Ukraine would immediately lead to further turmoil in the region. The European Union and the U.S. imposed penalties on individuals in Russia and Crimea amid the standoff over Ukraine. The Australian dollar bolster briefly after minutes of the Reserve Bank assembly this month reiterated a period of interest rate stability was likely.
“I expect the Fed to taper asset purchases by another $10 billion,” said Kazuo Shirai, a trader at Union Bank NA in Los Angeles. “There are a lot of investors wanting to buy the dollar on dips.”
The yen was slightly altered at 101.76 per dollar as of 10:33 a.m. in Tokyo from yesterday, when it tumbled 0.4 percent. It boosted 1.9 percent last week against the greenback, the steepest increase since the five days ended January 24. Japan’s currency backslide 0.1 percent to 141.79 per euro from yesterday, when it downgrade 0.5 percent. Europe’s 18-nation currency was slightly altered at $1.3931 from $1.3922 at the New York close.
FOMC Assembly
U.S. policy makers will meet today and tomorrow in the Federal Open Market Committee’s first assembly led by Federal Reserve Chair Janet Yellen since she succeeded Ben S. Bernanke last month. The central bank has trimmed down monthly bond purchases to $65 billion this year, from $85 billion in 2013. Yellen last month promised further “measured” steps to slow the purchasing if development continues.
The Fed will possibly dismiss its 6.5 percent jobless rate threshold and change to qualitative guidance for signaling when it will consider boosting the primary interest rate, according to 76 percent of 54 economists in a Bloomberg News survey conducted March 14-17. Twenty percent of the analysts polled said the Fed will maintain the threshold it adopted in December 2012, while 6 percent declared it will turn down such guidance entirely.
Housing opens possibly bolstered 3.4 percent to 910,000 in February from the prior month, the median projection of economists in a Bloomberg poll show before a Commerce Department report today. Economists in a separate survey projects building permits hiked 1.6 percent to 960,000 last month from a revised 945,000 in January.
Long Dollar
Nomura Holdings Inc., Japan’s largest brokerage, recommended purchasing the dollar versus the yen between the current level and 101.75.
“The FOMC meeting this week could be a catalyst for USD gains,” Nomura analysts including Jens Nordvic and Yujiro Goto, wrote in an e-mail yesterday. “We think removal of guidance related to the 6.5 percent unemployment threshold will weaken the Fed’s forward guidance on the margin, which could see some increase in US rates and USD support.”
Russia’s ruble bounced back yesterday from a record low, leaping 0.6 percent to 42.7821 versus Bank Rossii’s goal basket of dollars and euros by 6 p.m. in Moscow, when the central bank ends its market operation. The nation’s Micex index of shares rose 3.7 percent after depreciating 7.6 percent last week. The MSCI Asia Pacific Index leaped 0.5 percent today.
EU foreign ministers settled to freeze assets and set visa travel bans on 21 Russians and Crimeans, while President Barack Obama’s administration put same penalties on seven Russian government officials and four Ukrainians including ousted President Viktor Yanukovych. Putin responded by recognizing Crimea as a sovereign state.
Crimean lawmakers set in motion measures for the Black Sea peninsula to leave Ukraine and join Russia after a March 16 plebiscite, which EU and U.S. leaders have condemned as illegal. Russia has deployed about 60,000 troops along the Ukrainian border, according to the government in Kiev.
The Aussie was slightly moved at 90.73 U.S. cents after surging as much as 0.3 percent following the release of the the Reserve Bank of Australia’s minutes of its March 4 assembly.
The central bank stated that it saw more indications record-low interest rates were lifting progress, and reiterated a period of steady borrowing costs was likely.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: