Global currencies – Daily review (18 June 2013)
June 18, 2013 in Forex Analysis
Forex markets are trading in a relatively narrow range this week, amid the highly anticipated FOMC (Federal Open Market Committee) meeting on Wednesday since the G8 meeting (17-18 June) in Northern Ireland failed to produce any major economic news, .
The US dollar managed to limit its decline accumulated during the past week, but that was not enough to gain support for a serious correction, and the greenback is still hovering around monthly-low levels in its cross rates. The main focus continues to be on the Fed’s pending decision about the future of the stimulus programme, and market makers prefer to wait for a hint by the bank.
Preliminary estimates bet that tomorrow Fed Chairman Ben Bernanke will point at an early reduction of the asset-buying programme worth $85 billion per month. If expectations missed the actual Fed signals, the pressure on the greenback will increase as the anti-crisis measures will be left in place for an indefinite period.
The US dollar was flat against the Japanese yen this morning, trading at 95.06 at the time of writing. Meanwhile the greenback was losing ground against the euro, trading at 1.3388 at the time of writing.
The so-called commodity currencies fell slightly, with the AUD/USD trading at 0.9470, and the USD/CAD at 1.0193 at the time of writing. The British pound was also down a bit at 1.5659 this morning, despite a better-than-expected result on the country’s Consumer Price Index which was up to 3.1%, opposite forecasts for a reading of 2.6%.
Looking further in the day, theUSsession is due to produce the Core Consumer Price index for May, which is expected to bring more volatility to the market.
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