US Session – Dollar decline pauses as focus turns to Fed
July 29, 2013 8:06 pm
The dollar gained some ground against most major peers in the U.S. session on Monday, but was little changed against the yen.
Most investors are positioning ahead of key risk events this week and are waiting on central bank policy announcements and key data for direction.
The dollar is generally weaker since last week on speculation of a dovish Fed and that it would hold onto stimulus longer than expected by markets. Monetary stimulus has been considered a drag on the dollar’s value.
U.S. jobs data on Friday, namely the nonfarm payrolls data, is also in focus and will be closely watched.
As a result many traders have reduced demand for dollar and are waiting for data and the Fed meeting that begins on Tuesday and ends on Wednesday July 31st.
The dollar has dropped to a one-month low against the Japanese yen today. USDJPY found support at 97.62 yen and remained above this level throughout the day.
Another key focus this week will be the European Central Bank’s monetary policy meeting on August 1st.
The euro was steady most of the day until the U.S. session when it fell from a five-week high. EURUSD dipped to $1.3238, down from a day high of $1.3294
Sterling also fell against the dollar in the New York trade, with GBPUSD sliding to a low of $1.5327 before steadying at $1.5346.
The Bank of England policy meeting is due on Thursday, which could be a mover for sterling, depending on the bank’s outlook for the U.K. economy.
The dollar gained some ground against most major peers in the U.S. session on Monday, but was little changed against the yen.
Most investors are positioning ahead of key risk events this week and are waiting on central bank policy announcements and key data for direction.
The dollar is generally weaker since last week on speculation of a dovish Fed and that it would hold onto stimulus longer than expected by markets. Monetary stimulus has been considered a drag on the dollar’s value.
U.S. jobs data on Friday, namely the nonfarm payrolls data, is also in focus and will be closely watched.
As a result many traders have reduced demand for dollar and are waiting for data and the Fed meeting that begins on Tuesday and ends on Wednesday July 31st.
The dollar has dropped to a one-month low against the Japanese yen today. USDJPY found support at 97.62 yen and remained above this level throughout the day.
Another key focus this week will be the European Central Bank’s monetary policy meeting on August 1st.
The euro was steady most of the day until the U.S. session when it fell from a five-week high. EURUSD dipped to $1.3238, down from a day high of $1.3294
Sterling also fell against the dollar in the New York trade, with GBPUSD sliding to a low of $1.5327 before steadying at $1.5346.
The Bank of England policy meeting is due on Thursday, which could be a mover for sterling, depending on the bank’s outlook for the U.K. economy.
Related Posts: