US Session – Dollar jumps against yen after Fed minutes
August 21, 2013 7:45 pm
The U.S. dollar spiked against the yen on the perception that the Federal Reserve tapering timeline is on track.
The much awaited FOMC minutes were released today showing broad support by policy makers to start scaling back the Fed’s bond buying program and many speculate that this could be as soon as September.
Cutting back on this stimulus program is positive for the dollar and so demand for it was back up after having declined in the past three days.
Against the yen, the dollar was up 0.5 percent. After the release of the Fed minutes USDJPY jumped to a high of 97.97 yen.
The euro dipped against the dollar to $1.3334 after the Fed minutes and was last at $1.3370, down 0.4 percent. On Tuesday, euro hit a six-month high of $1.3451.
Sterling experience some volatility after the Fed minutes, with GBPUSD hitting $1.5716 before steadying at $1.5675.
Now that the Fed minutes are out of the way, the next risk event will be the U.S. nonfarm payrolls data, due on September 6. This will be closely watched by investors since any improvement in the labor market is enough to justify scaling back stimulus.
The U.S. dollar spiked against the yen on the perception that the Federal Reserve tapering timeline is on track.
The much awaited FOMC minutes were released today showing broad support by policy makers to start scaling back the Fed’s bond buying program and many speculate that this could be as soon as September.
Cutting back on this stimulus program is positive for the dollar and so demand for it was back up after having declined in the past three days.
Against the yen, the dollar was up 0.5 percent. After the release of the Fed minutes USDJPY jumped to a high of 97.97 yen.
The euro dipped against the dollar to $1.3334 after the Fed minutes and was last at $1.3370, down 0.4 percent. On Tuesday, euro hit a six-month high of $1.3451.
Sterling experience some volatility after the Fed minutes, with GBPUSD hitting $1.5716 before steadying at $1.5675.
Now that the Fed minutes are out of the way, the next risk event will be the U.S. nonfarm payrolls data, due on September 6. This will be closely watched by investors since any improvement in the labor market is enough to justify scaling back stimulus.
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