US Session – Dollar broadly lower as Bernanke in focus
July 16, 2013 7:59 pm
The dollar fell against most major counterparts during the U.S. trading session on Tuesday as investors were being cautious before the Federal Reserve chief Ben Bernanke’s testimony to a U.S. congressional panel on Wednesday.
Markets are expecting Bernanke to reiterate that U.S. monetary policy will remain accommodative. The dollar fell last week when the Fed chief “highly accommodative monetary policy would be needed for the U.S. in the foreseeable future”.
If the Fed decides to continue with its bond purchase program, then this will keep the dollar weak.
The dollar’s decline began early in the U.S. session after data showed U.S. consumer prices rose more than expected in June.
Against the yen, the dollar lost nearly 1 percent on the day as USDJPY slid to 99.16 yen.
It is hoped that the dollar’s losses will be limited as the yen could face some pressure toward the weekend on expectations that Japan’s upper house election on Sunday will hand Prime Minister Shinzo Abe a big victory, giving him more freedom to push forward with his agenda to revive the economy through monetary easing.
The euro recovered from a temporary decline after disappointing German ZEW investor sentiment data. Losses were quickly pared and EURUSD climbed in the U.S. session to a high of $1.3173, gaining 0.8 percent on the day.
Sterling also recovered from a sharp fall after U.K. inflation data today sent it tumbling. GBPUSD revered losses and rose to a high of $1.5167 due to the broadly weaker dollar.
The dollar fell against most major counterparts during the U.S. trading session on Tuesday as investors were being cautious before the Federal Reserve chief Ben Bernanke’s testimony to a U.S. congressional panel on Wednesday.
Markets are expecting Bernanke to reiterate that U.S. monetary policy will remain accommodative. The dollar fell last week when the Fed chief “highly accommodative monetary policy would be needed for the U.S. in the foreseeable future”.
If the Fed decides to continue with its bond purchase program, then this will keep the dollar weak.
The dollar’s decline began early in the U.S. session after data showed U.S. consumer prices rose more than expected in June.
Against the yen, the dollar lost nearly 1 percent on the day as USDJPY slid to 99.16 yen.
It is hoped that the dollar’s losses will be limited as the yen could face some pressure toward the weekend on expectations that Japan’s upper house election on Sunday will hand Prime Minister Shinzo Abe a big victory, giving him more freedom to push forward with his agenda to revive the economy through monetary easing.
The euro recovered from a temporary decline after disappointing German ZEW investor sentiment data. Losses were quickly pared and EURUSD climbed in the U.S. session to a high of $1.3173, gaining 0.8 percent on the day.
Sterling also recovered from a sharp fall after U.K. inflation data today sent it tumbling. GBPUSD revered losses and rose to a high of $1.5167 due to the broadly weaker dollar.
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