US Session – Dollar rallies against yen after US data
June 27, 2013 7:18 pm
The dollar rallied sharply against the yen in the US session after data gave investors reason to change their expectations that the Fed will taper stimulus soon. The economic data on Thursday was not strong enough to end quantitative easing and most likely the fed’s bond buying stimulus measures will stay in place for the time being.
Data showed consumer spending in the US rebounded in May and new applications for unemployment benefits fell last week, but the numbers did not show a big improvement, suggesting the economy remains only on a moderate growth path.
This would likely lead the Fed to take time in cutting back on stimulus measures. In this peculiar case, this was positive for the dollar, which surged against the yen after the data.
USDJPY gained 0.7 percent to climb to 98.55 yen, regaining losses made i the past two days when the pair tumbled to 96.95.
The euro was little changed against the dollar, ending the session almost flat at $1.3050.
Overall the dollar was broadly stronger against major currencies, as the ICE dollar index rose 0.1 percent to 83.068 after touching a three-week high of 83.171. It was the seventh straight gain for the index.
Sterling was hit hard as it fell to its lowest level against the dollar for more than three weeks. Driving the pound lower was weaker than expected economic data fuelled speculation that the Bank of England will continue with more quantitative easing to stimulate the economy.
GBPUSD reached as low as $1.5200 in mid-New York trading until steadying around $1.5260.
The dollar rallied sharply against the yen in the US session after data gave investors reason to change their expectations that the Fed will taper stimulus soon. The economic data on Thursday was not strong enough to end quantitative easing and most likely the fed’s bond buying stimulus measures will stay in place for the time being.
Data showed consumer spending in the US rebounded in May and new applications for unemployment benefits fell last week, but the numbers did not show a big improvement, suggesting the economy remains only on a moderate growth path.
This would likely lead the Fed to take time in cutting back on stimulus measures. In this peculiar case, this was positive for the dollar, which surged against the yen after the data.
USDJPY gained 0.7 percent to climb to 98.55 yen, regaining losses made i the past two days when the pair tumbled to 96.95.
The euro was little changed against the dollar, ending the session almost flat at $1.3050.
Overall the dollar was broadly stronger against major currencies, as the ICE dollar index rose 0.1 percent to 83.068 after touching a three-week high of 83.171. It was the seventh straight gain for the index.
Sterling was hit hard as it fell to its lowest level against the dollar for more than three weeks. Driving the pound lower was weaker than expected economic data fuelled speculation that the Bank of England will continue with more quantitative easing to stimulate the economy.
GBPUSD reached as low as $1.5200 in mid-New York trading until steadying around $1.5260.
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