AceTrader 1-wk TRIAL
www.AceTraderFX.com 24-Hr Real-time Signals Consistent Performance Intra-day, Daily, Weekly. with Email Alerts Function Try 1-week for $25 USD
Market Review - 18/11/2009 22:07 All times in GMT
Dollar drops against euro as Fed officer signals U.S. interest rate will remain at record low
The dollar declined versus the single currency after St. Louis Fed President James Bullard said that the central bank may tighten policy by adjusting its emergency asset buying programs instead of hiking interest rates. Earlier, a reported showed that U.S. CPI rose 0.3% in October, slightly higher than economists' expectation of 0.2%. In addition, a separate report indicated that housing starts dropped 10.6% to an annual rate of 529,000 units, the biggest decline in 10 months.
Euro rallied versus most its counterparts on Wednesday. Short-covering bids lifted the single currency in Asian session and cross buying in euro versus the pound fueled the rise in European morning. The single currency subsequently climbed to an intra-day high at 1.4991 against the dollar in New York session after Bullard's comments, however, the pair retreated on profit-taking near NY close. Eur/gbp rebounded strongly to 0.8950 after hitting a two-month low at 0.8834 on Tuesday. eur/jpy also rose sharply from 132.59 to 134.01 before easing.
The British pound fell against euro and the dollar on Wednesday after BoE minutes signaled policymakers would maintain the extremely loose monetary policy for the near future. Cable tumbled to 1.6715 in New York afternoon before recovering. The BoE Monetary Policy Committee split three ways in Nov, with 7 members backing the 25 billion pound expansion of quantitative easing, one wanting more and another calling for no increase at all.
Data to be released on Thursday include Japan All industry index and leading indicators, Switzerland trade balance, U.K. PSNCR and retail sales, Canada leading indicators and wholesale sales, U.S. jobless claims, leading indicators and Philadelphia Fed survey.
Dollar drops against euro as Fed officer signals U.S. interest rate will remain at record low
The dollar declined versus the single currency after St. Louis Fed President James Bullard said that the central bank may tighten policy by adjusting its emergency asset buying programs instead of hiking interest rates. Earlier, a reported showed that U.S. CPI rose 0.3% in October, slightly higher than economists' expectation of 0.2%. In addition, a separate report indicated that housing starts dropped 10.6% to an annual rate of 529,000 units, the biggest decline in 10 months.
Euro rallied versus most its counterparts on Wednesday. Short-covering bids lifted the single currency in Asian session and cross buying in euro versus the pound fueled the rise in European morning. The single currency subsequently climbed to an intra-day high at 1.4991 against the dollar in New York session after Bullard's comments, however, the pair retreated on profit-taking near NY close. Eur/gbp rebounded strongly to 0.8950 after hitting a two-month low at 0.8834 on Tuesday. eur/jpy also rose sharply from 132.59 to 134.01 before easing.
The British pound fell against euro and the dollar on Wednesday after BoE minutes signaled policymakers would maintain the extremely loose monetary policy for the near future. Cable tumbled to 1.6715 in New York afternoon before recovering. The BoE Monetary Policy Committee split three ways in Nov, with 7 members backing the 25 billion pound expansion of quantitative easing, one wanting more and another calling for no increase at all.
Data to be released on Thursday include Japan All industry index and leading indicators, Switzerland trade balance, U.K. PSNCR and retail sales, Canada leading indicators and wholesale sales, U.S. jobless claims, leading indicators and Philadelphia Fed survey.
