US Session – Dollar holds above 99 yen after Chicago Fed data
November 12, 2013 8:46 pm
The US dollar held firm against the yen after an upbeat Chicago Fed National Activity Index showed the US economy grew a bit faster in September. The data comes after Friday’s stronger-than-expected US nonfarm payrolls numbers. The more positive the data are, then the more likely the Fed will begin trimming stimulus sooner than previously anticipated.
The dollar rose to a two-month peak against the yen, sustaining levels above the key 99.00 level to end the US session up 0.03% at 99.70 yen, and up 0.5% on the day. It peaked at 99.78 yen in the European session, which was its strongest level since September 13.
The euro was able to bounce 0.14% against the dollar in the US session to 1.3427. The single currency shrugged of soft German inflation data and held above a two-month low of 1.3293 hit last Thursday, when it sold off sharply after the ECB’s unexpected rate cut.
The pound fell for a third day versus the dollar and euro after disappointing UK inflation data. CPI rose 2.2% in October, lower than estimates for a 2.5% rise and below the 2.7% increase the month before. The lower inflation rate likely means diminished expectations of a rate hike by the Bank of England.
Sterling dropped to 1.5853 – the lowest level since September 13 after the UK inflation data but rebounded in the US session to 1.5895, ending the session little changed by a positive 0.01%.
The US dollar held firm against the yen after an upbeat Chicago Fed National Activity Index showed the US economy grew a bit faster in September. The data comes after Friday’s stronger-than-expected US nonfarm payrolls numbers. The more positive the data are, then the more likely the Fed will begin trimming stimulus sooner than previously anticipated.
The dollar rose to a two-month peak against the yen, sustaining levels above the key 99.00 level to end the US session up 0.03% at 99.70 yen, and up 0.5% on the day. It peaked at 99.78 yen in the European session, which was its strongest level since September 13.
The euro was able to bounce 0.14% against the dollar in the US session to 1.3427. The single currency shrugged of soft German inflation data and held above a two-month low of 1.3293 hit last Thursday, when it sold off sharply after the ECB’s unexpected rate cut.
The pound fell for a third day versus the dollar and euro after disappointing UK inflation data. CPI rose 2.2% in October, lower than estimates for a 2.5% rise and below the 2.7% increase the month before. The lower inflation rate likely means diminished expectations of a rate hike by the Bank of England.
Sterling dropped to 1.5853 – the lowest level since September 13 after the UK inflation data but rebounded in the US session to 1.5895, ending the session little changed by a positive 0.01%.
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