US Session – Dollar rally cools in thin trading conditions
November 11, 2013 8:29 pm
The US dollar took a breather following strong gains last week as the market tried to digest the previous week’s major events such as the quarter-point rate cut by the ECB and the strong nonfarm payrolls for October.
The euro managed to rebound by 0.10% to trade above the 1.34 level at 1.3408 versus the greenback.
Generally the new market consensus was to sell the euro, as the ECB could be forced to take additional action to stimulate the Eurozone economy and the Fed could be forced to taper faster if a recent string of strong economic reports in the US continues.
The US dollar was essentially flat against the yen, gaining 0.03% to 99.21. Equities were trading slightly higher in New York as trading volumes were low because of the Veterans’ day holiday.
Traders were looking forward to Tuesday, when inflation data would be released from countries such as Germany, Italy and the UK.
The British pound rebounded slightly versus the dollar, rising 0.04% to trade at 1.5989. This will be an important week for the UK currency as the Bank of England’s inflation report is released on Wednesday together with unemployment data.
The US dollar took a breather following strong gains last week as the market tried to digest the previous week’s major events such as the quarter-point rate cut by the ECB and the strong nonfarm payrolls for October.
The euro managed to rebound by 0.10% to trade above the 1.34 level at 1.3408 versus the greenback.
Generally the new market consensus was to sell the euro, as the ECB could be forced to take additional action to stimulate the Eurozone economy and the Fed could be forced to taper faster if a recent string of strong economic reports in the US continues.
The US dollar was essentially flat against the yen, gaining 0.03% to 99.21.
Equities were trading slightly higher in New York as trading volumes were low because of the Veterans’ day holiday.
Traders were looking forward to Tuesday, when inflation data would be released from countries such as Germany, Italy and the UK.
The British pound rebounded slightly versus the dollar, rising 0.04% to trade at 1.5989. This will be an important week for the UK currency as the Bank of England’s inflation report is released on Wednesday together with unemployment data.
Related Posts: