US Session – US dollar unable to hold post-US GDP rally
November 7, 2013 8:53 pm
The US dollar made a U-turn against the yen after surging on US GDP data today. The dollar rallied above the key 99.00 yen level after data indicated the quickest rate of growth in the US economy in a year during the third quarter. The strong growth raised speculation that the Federal Reserve may be able to begin tapering stimulus sooner.
After hitting a US session high of 99.40, the dollar fell against the yen to end 0.86% lower at 97.89. Focus now turns to the October US nonfarm payrolls report due on Friday. This data is expected to be another big driver for the dollar.
The euro surprisingly made a come-back in the US session and managed to trim losses by 50% after tumbling against the dollar following the ECB’s unexpected 25-basis point rate cut today.
The ECB lowered the benchmark rate to 0.25% and ECB President Mario Draghi said in a press conference that the Eurozone is at risk of suffering a prolonged period of inflation. He added that the central bank will remain accommodative as long as is necessary.
The euro ended the US session 0.42% higher after rebounding from a low of 1.3293.
Sterling initially fell against the dollar after the Bank of England announced it left its interest rate and asset purchase program unchanged today.
The pound extended losses after the US GDP data but was able to bounce back up to end the US session with a 0.27% gain at 1.6086.
The US dollar made a U-turn against the yen after surging on US GDP data today. The dollar rallied above the key 99.00 yen level after data indicated the quickest rate of growth in the US economy in a year during the third quarter. The strong growth raised speculation that the Federal Reserve may be able to begin tapering stimulus sooner.
After hitting a US session high of 99.40, the dollar fell against the yen to end 0.86% lower at 97.89. Focus now turns to the October US nonfarm payrolls report due on Friday. This data is expected to be another big driver for the dollar.
The euro surprisingly made a come-back in the US session and managed to trim losses by 50% after tumbling against the dollar following the ECB’s unexpected 25-basis point rate cut today.
The ECB lowered the benchmark rate to 0.25% and ECB President Mario Draghi said in a press conference that the Eurozone is at risk of suffering a prolonged period of inflation. He added that the central bank will remain accommodative as long as is necessary.
The euro ended the US session 0.42% higher after rebounding from a low of 1.3293.
Sterling initially fell against the dollar after the Bank of England announced it left its interest rate and asset purchase program unchanged today.
The pound extended losses after the US GDP data but was able to bounce back up to end the US session with a 0.27% gain at 1.6086.
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