Quantcast

Daily review – Global currencies – 18 July

July 18, 2013 10:05 am GMT+0  in Forex Analysis

0
  

The US dollar rose against most of its rivals on Thursday, after the Fed’s Chairman Ben Bernanke spoke before Congress in a two-day testimony – its last day being today. Bernanke  confirmed what market participants already knew: the central bank will change the asset-purchase parameters only when certain economic goals are reached. During the meeting, he emphasised the importance of separating the QE tapering from the notion of economic austerity policy. According to him, a clear distinction between them is necessary because the latter could lead to negative consequences for the US economic recovery.  However, Bernanke’s speech was met with strong criticism by Republicans questioning the Fed’s measures and their strong and more evident effect on ‘’the Wall Street rather than the Main street”.

At the beginning of the session, traders started selling the dollar; but then bet on it again, amid prospects that the Fed will reduce its stimulus programme by the end of the year. This morning the dollar was slightly lower against the euro than its yesterday’s intraday high at 1.3091, trading at 1.313 at the time of writing.

The greenback managed to gain ground against the yen after yesterday’s Bernanke speech and was trading at 100.16 at the time of writing.

Meanwhile, the British pound increased sharply after the Bank of England meeting minutes were published. The report showed that all board members have voted unanimously to keep the current QE unchanged. Among other UK economic results, data showed that the number of unemployed people has decreased by 21,200, opposite forecasts for a decline by 8,000, which was a further boost for the sterling’s chart performance. At the time of writing, the pound was trading at 1.5196.

The Australian dollar, on the other hand, slipped slightly and was trading at 0.9169 at the time of writing.

 

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.

Author Info

Avatar of DF Markets

DF Markets (Delta Financial Markets Ltd.) is a Forex and CFD broker based in London. The company is regulated by the Financial Services Authority (FSA register number 534027) and the protection of client funds is ensured by the Financial Services Compensation Scheme (FSCS). DF Markets is fully committed to provide individual and institutional investors with high quality financial services through implementation of the best business practices. Contact the author at Google: +DF Markets.

Contributor Contact, Accountability and Policies

Leave a reply

Your email address will not be published. Required fields are marked *