Daily currency review (21 June 2013)

June 21, 2013 in Forex Analysis

The US dollar continued to appreciate for a third day against all of its major pairs, after Fed’s Ben Bernanke said that the US central bank may reduce the amount of the stimulus programme before the end of the year.

The EUR/USD fell sharply after Bernanke’s comments on Wednesday, dropping from 1.3409 to its weekly low from yesterday at 1.3173. This morning the pair is trading a bit higher, hovering around the 1.322 level. The greenback’s rise was further supported by better-than-expected results on US Existing Home Sales and surprisingly positive data Philadelphia Fed Manufacturing Survey, both published yesterday.

The dollar advanced against the Japanese yen as well, jumping from 94.88 on Wednesday to 97.85 at the time of writing.


More noticeable declines were registered in the commodity currencies and emerging markets in general. The expected risk aversion directed serious financial flows to the Swiss franc and the currency advanced against the greenback. The British pound’s performance against the dollar also ‘’suffered’’ from Bernanke’s comments, and the GBP/USD declined from 1.5661 on Wednesday to 1.5477 at the time of writing.

The Australian dollar is also depreciating against the greenback since Wednesday, falling from 0.9559 to 0.9226 at the time of writing.

Analysts commented that from now on, the macroeconomic indicators of the US economy will be more closely monitored by market participants in attempts to look for confirmation of the Fed’s optimistic forecasts. This will trigger additional dynamics in dollar crosses and increase the volatility on the Forex markets.


The focus will also remain on decisions of the other leading central banks. The yen may fall soon under new pressure, on expectations that the Bank of Japan is preparing for new measures aimed at stimulating the country’s economy.


Today is shaping as quite a trading day, with the main highlight beingCanada’s Consumer Price Index.


Source: dfmarkets.co.uk


Disclaimer: The Content of these charts and analyses does not constitute any form of advice or recommendation by Delta Financial Markets to buy, sell (or refraining from making) any trade or investment. You may wish to seek independent advice before entering into transactions.

Delta Financial Markets shall not be held liable by you or any others for any decision made or action taken by you or others based upon reliance on or use of information or materials obtained or accessed through use of these technical analyses and charts. DF Markets assumes no responsibility for errors, inaccuracies or omissions in these materials, nor shall it be liable for damages arising out of any person’s reliance upon the information on this page. DF Markets shall not be liable for any special, indirect, incidental, or consequential damages.



Comments are closed.