Posts Tagged: FED

The Dow Jones FXCM Dollar Index has suffered a serious influence in the last five days. Risk trends have shown a little progress in the past session and the Fed announced that its MBS purchases will not increase. When analyzing the individual performances it can be observed the reasons why the dollar declined and why the immediate results are not to see the EUROUSD surge higher than 1.3000. The Dollar Index is composed of a balanced weighting of four different counterparts of the currency. The Dollar has managed to put on a modest gain on the day for the EUROUSD standards. This leads to the conclusion to a strengthened position of the dollar instead of a weakened one.

The fundamental care for the dollar refers to the general risk trends. The market shows extremely low rates and the near-zero yield on the US benchmark rates. The Forex-based FX VIX Index has a low level and it is unlikely Read more »

The trading market has evolved in a rather unexpected way today, due to the fact that the USD started to grow against most of its major counterparts, managing to reach such growth levels as to cause the AUD to fall below parity. This comes as a reaction of the Federal Reserve Bank’s decision of purchasing bonds, which has immediately increased the interest for the US Dollar.

The US Dollar started to widely grow after the moment when the Federal Reserve Bank announced its decision of purchasing long-term securities. This decision caused an instant demand for safe-haven currencies, including the US Dollar, which completely took advantage by the situation. The Federal Open Market Committee decided to maintain the federal funds rate at the value of 0 to 0.25 percent. In its statement, the FOMC said the following: “The Committee intends to purchase, by the end of June 2012, $400 billion of Treasury securities with remaining maturities of 6 years Read more »

Asian stock markets opened higher today, buoyed by developments in Greece and gains on Wall Street. NIKKEI started the day at 9,525.25, previous close was 9,459.66. HANG SENG opened at 22,047.38, previous close was 21,850.59. For today the markets are awaiting the outcome of the FOMC meeting. The Federal Open Market Committee’s two days meeting will end today and Chairman Ben Bernanke will hold a press conference. Investors expect that the Fed will cut its growth forecast for this year. As a result, the market participants are still cautious.

Asian trading session started the day with USD gaining against other major currencies. We can not exactly say that it is because USD is getting stronger because U.S. economy is not in a good shape according to many investors. It is more logical to say that weakening of other currencies cause USD to gain.

Meanwhile, Greece moved a step closer to receiving a second round of bailout money Read more »

Asian stock markets opened higher today but the market participants are cautious before Federal Open Market Committee Statement tomorrow. NIKKEI started the day at 9,420.43, previous close was 9,354.32. HANG SENG opened at 21,770.59, previous close was 21,599.51. Greek debt problems and shortage of good news are limiting the gains. Besides slowing growth in U.S. economy is still pressuring the markets.

Asian trading session started the day with USD weakness. USD is weakening against its major counterparts. Safe heaven currencies CHF and JPY are performing better than EUR, AUD and GBP.

AUD was rising during early hours until Reserve Bank of Australia released Minutes of the Monetary Policy Meeting (June 7 Board Meeting). The minutes said “This outlook suggested that further tightening in monetary policy would be necessary at some point. Members considered, however, that the flow of data over the past month had not added any urgency to the need for an adjustment to policy. In Read more »

The Currency market is going flat during the Asian session while Asian stock markets opened lower. Fears of slowing U.S. economy and concerns slowing global growth are affecting the markets. NIKKEI started the day at 9,371.21, previous close was 9,380.35. HANG SENG opened at 22,806.98, previous close was 22,949.56.

Yesterday the euro dropped after a German official mentioning that a second Greek bailout was not yet certain. Later on, Eurogroup President Jean-Claude Juncker’s comments fueled selling in the euro. In his speech he was saying that the euro was overvalued. Drop in the euro was limited as the market participants have been expecting a rate hike in July. At this point, the FX market is looking to European Central Bank meeting on Thursday. If ECB president Jean-Claude Trichet hints at a rate hike, the focus will turn toward interest rate differentials and it obviously pull money towards the euro.

Still many analysts think that a restructuring of Greece’s Read more »

In the Asian session today the currency market is calm as this is the first trading day of the week. The Chinese markets are closed due to holiday. Today’s news schedule is not loaded as well.

AUD/USD is moving over 1.0700 levels, currently at 1.0742, even though MI Inflation Gauge and ANZ Job Advertisements figures were disappointing. The dollar did not show any sign of strength in these early hours of the Asian session.

According to the TD Securities – Melbourne Institute, monthly inflation gauge rose by 0.2% in May, following a 0.3% rise in April and a 0.6% rise in March. In the twelve months to May, the inflation gauge rose by 3.3%, following a 3.6% rise for the twelve months to April.

Total job advertisements on the internet and in newspapers decreased by 6.5% in May, said the ANZ (Australia and New Zealand Banking Group) today. According to their latest report, newspaper job ads fell Read more »

Even though the common currency of Eurozone is still under pressure from the large debts of countries which are having financial problems, EUR/USD keeps rising. It rose as high as 1.4436 on speculation European officials will approve additional aid to Greece within next month. Eurogroup President Jean-Claude Juncker said European leaders will decide on a new aid package by the end of next month and have ruled out a “total restructuring” of Greece’s debt. In addition, we should also remind that some economists are expecting a rate hike in July and this is giving more power to EUR bulls.

In an interview yesterday, EU Economic Affairs Commissioner Olli Rehn said that because of the domino effect it might create on the european markets, debt restructuring is “off the table”. He added that alternatives such as a Vienna-style fix and so-called reprofiling were being considered. “We are examining the feasibility of voluntary rescheduling, or reprofiling, without it creating a Read more »

Yesterday the U.S. and the U.K. markets were closed due to holiday. As a result, the currency exchange market was flat. On our previous report we had told that without U.S. and U.K. participants the market has no flows or clue.

Today the pairs are moving much faster and the bulls are back in action. Major currencies are rallying against USD after the Wall Street Journal’s report. The WSJ’s online edition said that “Germany is considering dropping its push for an early rescheduling of Greek bonds in order to facilitate a new package of aid loans for Greece. Berlin’s concession that it must lend Greece more money, even without burden-sharing by bondholders in the short term, would help Europe overcome its impasse over Greece’s funding needs before the indebted country runs out of cash in mid-July”.

Meanwhile, U.S. economic data releases and news reports are not helping the dollar. Concerns over the debt ceiling and slowing economic recovery Read more »