Pages

Monday 17 June 2013

Forex - Dollar edges higher ahead of Federal Reserve meeting


The dollar traded largely higher against most major currencies on Monday as investors sought safety in the currency ahead of the Federal Reserve's two-day monetary policy meeting that begins Tuesday.

Talk the U.S. central bank may begin scaling back stimulus programs gave the greenback support, as such tools like the Fed's monthly USD85 billion bond-buying program weaken the currency to spur recovery.

In U.S. trading on Monday, EUR/USD was down 0.06% at 1.3336.

Uncertainty over the Federal Reserve's plans to scale back stimulus measures has fueled volatility in global markets in recent days.

A surprise decision by the Bank of Japan to leave policy unchanged last week after months of rolling out stimulus measures has sparked concerns that the days of ultra-loose policies in the U.S. may be ending.

On Monday, the Federal Reserve Bank of New York's index of manufacturing conditions in the state came in better than expected in June, rising to a three-month high of 7.8 from -1.4 in May. 

Analysts were expecting the Empire State Manufacturing Index to come in at -0.5, which convinced many investors that monetary easing measures may taper off soon.

Meanwhile the eurozone posted a smaller-than-forecast trade surplus of EUR16.1 billion in April. 

Exports fell by 0.8% from a month earlier, while imports rose 0.5%.

The greenback, meanwhile, was up against the pound, with GBP/USDtrading down 0.11% at 1.5688.

The dollar was up against the yen, with USD/JPY up 1.01% at 95.13, and up against the Swiss franc, with USD/CHF trading up 0.53% at 0.9256.

The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.20% at 1.0197, AUD/USD down 0.49% at 0.9526 and NZD/USD trading down 0.76% at 0.7982.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.21% at 80.99.

On Tuesday, the U.S. is to release official data on building permits, housing starts and consumer price inflation.

0 comments :

Post a Comment