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Posts tagged: Dollar

Dollar Ends Last FOMC Week in 2014 on Strong Note

By , December 20, 2014 3:33 am

Panoramic view on many US hundred-dollar billsThis week was important for the Forex market and the US dollar in particular. The Federal Open Market Committee held its last policy meeting in 2014, and it could make or break the future for the US currency. As it turned out, the event was beneficial for the greenback.

The dollar did not rally after the FOMC gathering immediately. On the contrary, the greenback dropped initially as traders considered the policy statement less hawkish than was expected. Yet the drop was short-lived as market participants reconsidered their view, especially after Federal Reserve Chairwoman Janet Yellen made some hawkish remarks at a press-conference.

The Fed was not the only central bank to hold policy meeting during this week, and policy decisions of other banks were impactful as well. The Swiss National Bank roiled the market implementing negative interest rates. As one could expect, it had a very negative effect on the Swiss franc. The Bank of Japan did not change its monetary policy, but the fact that expansive monetary accommodation remained in place was enough to drive the Japanese yen down.

EUR/USD sank from 1.2471 to 1.2226 (1.8 percent) over the week, closing at the lowest weekly settlement since July 2012. USD/JPY fell from 118.67 to 115.56 during the week but bounced to settle at 119.53. USD/CHF rallied from 0.9633 to 0.9843 — also the highest weekly close since July 2012.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

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Canadian Dollar Drops as CPI Declines, Still Stronger than Yen

By , December 19, 2014 1:57 pm

Canadian 20-dollar billsThe Canadian dollar fell today as Canada’s consumer prices declined more than was expected. Still, the currency was able to outperform the euro and the Japanese yen.

Canada’s Consumer Price Index fell 0.4 percent in November from the previous month (not seasonally adjusted) while experts predicted just a 0.2 percent decline. The core CPI declined 0.2 percent while forecasters predicted no drop. Retails sales showed no change in October from September. This is compared to the predicted drop by 0.4 percent.

The falling CPI makes it is unlikely for the Bank of Canada to raise interest rates anytime soon. Considering prospects for monetary tightening from the Federal Reserve, the Canadian dollar should continue to underperform compared to its US counterpart. At the same time, exceptionally accommodative policy of the Japanese central bank allowed the loonie to gain on the yen.

USD/CAD rose from 1.1575 to 1.1603 as of 20:34 GMT today after touching the daily high of 1.1632. EUR/CAD dropped from 1.4221 to 1.4185, reversing the rally to daily maximum of 1.4290. CAD/JPY advanced from 102.60 to 103.03.

If you have any questions, comments or opinions regarding the Canadian Dollar, feel free to post them using the commentary form below.

Forex News

Dollar Bounces After Decline

By , December 17, 2014 2:05 am

Panoramic view on many US hundred-dollar billsThe US dollar bounced today following the decline during the previous trading session. The drop was a result of somewhat disappointing housing data from the United States.

US building permits fell from 1.09 million in October to 1.04 million in November. Housing starts declined from 1.05 million to 1.03 million. Both readings were a bit below expectations.

The report resulted in a drop of the US currency against major peers though the dollar remained strong against commodity currencies. Today, the greenback is attempting to reverse the losses, but it still has a long way to go before achieving that goal.

EUR/USD dropped from 1.2509 to 1.2485 as of 6:50 GMT today. GBP/USD declined from 1.5748 to 1.5723 while USD/JPY was up from 116.40 to 117.00.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

Earlier News About the US Dollar:

Forex News

Australian Dollar Mixed After RBA Minutes

By , December 16, 2014 4:19 am

Reverend John Flynn on Australian 20-dollar billToday, the Australian dollar rose against its US counterpart after reaching the new multi-year low earlier but fell versus the Japanese yen. The minutes of the central bank’s December policy meeting gave mixed signals to the markets.

The Reserve Bank of Australia reiterated in its minutes that “the most prudent course was likely to be a period of stability in interest rates.” Yet policy makers also discussed speculations about possible interest rate cuts:

They noted that market expectations implied some chance of an easing of policy during 2015 and discussed the factors that might be producing such an expectation.

Some experts argued that the discussion may be the first step in shifting to easing bias.

AUD/USD rose from 0.8210 to 0.8259 as of 9:55 GMT after touching the low of 0.8200 (the lowest since June 2010) earlier today. At the same time, AUD/JPY dropped from 96.73 to 96.13, and its daily minimum of 95.86 was the lowest level since October 30.

If you have any questions, comments or opinions regarding the Australian Dollar, feel free to post them using the commentary form below.

Forex News

Australian Dollar Mixed After RBA Minutes

By , December 16, 2014 4:19 am

Reverend John Flynn on Australian 20-dollar billToday, the Australian dollar rose against its US counterpart after reaching the new multi-year low earlier but fell versus the Japanese yen. The minutes of the central bank’s December policy meeting gave mixed signals to the markets.

The Reserve Bank of Australia reiterated in its minutes that “the most prudent course was likely to be a period of stability in interest rates.” Yet policy makers also discussed speculations about possible interest rate cuts:

They noted that market expectations implied some chance of an easing of policy during 2015 and discussed the factors that might be producing such an expectation.

Some experts argued that the discussion may be the first step in shifting to easing bias.

AUD/USD rose from 0.8210 to 0.8259 as of 9:55 GMT after touching the low of 0.8200 (the lowest since June 2010) earlier today. At the same time, AUD/JPY dropped from 96.73 to 96.13, and its daily minimum of 95.86 was the lowest level since October 30.

If you have any questions, comments or opinions regarding the Australian Dollar, feel free to post them using the commentary form below.

Forex News

Dollar Forecast: FOMC in Focus

By , December 16, 2014 1:36 am

The US dollar was demonstrating an incredible performance recently, rallying to multi-year highs against many of its most-traded peers. Yet the rally stalled as of now, making traders question what the future holds for the currency.

The major event for the dollar (and the whole Forex market) this week will be the policy meeting of the Federal Open Market Committee. The event is important not only because it will be the last policy decision this year but also because it will be accompanied by a press-conference and economic projections. It will be interesting to see Federal Reserve’s forecasts, particularly in regard to interest rates. Market participants will also be carefully studying the policy statement, watching to any change of a language. In particular, analysts will eye the mention of keeping interest rates low “for a considerable time.” Some policy makers were arguing in favor of dropping this phrase, and if the wording would not be present in the statement then speculators will consider it as a sign of a close interest rate hike. Some economists think that the Fed will hike rates in June if the phrase would indeed be dropped.

In general, market experts are counting on the FOMC to be hawkish, helping the dollar. Macroeconomic indicators were mostly supportive of such view, showing robust economic growth in the United States. Not everything is nice and shiny though as there were some rather disturbing reports. As an example, the New York manufacturing index demonstrated the first negative reading in almost two years. The FOMC mentioned that its policy decisions are data-dependent, and with data being not completely positive, policy makers may decide to postpone monetary tightening.

As usual, it is recommended for traders to exercise caution ahead of any major event. It is not only hard to predict what exactly will occur but also how the market will react to it. As a result, DailyFX is neutral on the dollar. Forex Crunch is also neutral on the dollar-euro currency pair but bullish on other dollar-crosses.

Looking away from the FOMC meeting and on the longer-term picture, fundamentals look bullish for the US currency. The market sentiment is averse to risk, making the greenback attractive as a haven currency. The dollar should be especially strong against commodity-related currencies due to the slump of prices for raw materials, led by crude oil. At the same time, it is not impossible for the currency to stay in a corrective mode till the end of the year considering how much strength it has spent in the recent impressive rally that has lasted for many months.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

Forex News

Dollar Forecast: FOMC in Focus

By , December 16, 2014 1:36 am

The US dollar was demonstrating an incredible performance recently, rallying to multi-year highs against many of its most-traded peers. Yet the rally stalled as of now, making traders question what the future holds for the currency.

The major event for the dollar (and the whole Forex market) this week will be the policy meeting of the Federal Open Market Committee. The event is important not only because it will be the last policy decision this year but also because it will be accompanied by a press-conference and economic projections. It will be interesting to see Federal Reserve’s forecasts, particularly in regard to interest rates. Market participants will also be carefully studying the policy statement, watching to any change of a language. In particular, analysts will eye the mention of keeping interest rates low “for a considerable time.” Some policy makers were arguing in favor of dropping this phrase, and if the wording would not be present in the statement then speculators will consider it as a sign of a close interest rate hike. Some economists think that the Fed will hike rates in June if the phrase would indeed be dropped.

In general, market experts are counting on the FOMC to be hawkish, helping the dollar. Macroeconomic indicators were mostly supportive of such view, showing robust economic growth in the United States. Not everything is nice and shiny though as there were some rather disturbing reports. As an example, the New York manufacturing index demonstrated the first negative reading in almost two years. The FOMC mentioned that its policy decisions are data-dependent, and with data being not completely positive, policy makers may decide to postpone monetary tightening.

As usual, it is recommended for traders to exercise caution ahead of any major event. It is not only hard to predict what exactly will occur but also how the market will react to it. As a result, DailyFX is neutral on the dollar. Forex Crunch is also neutral on the dollar-euro currency pair but bullish on other dollar-crosses.

Looking away from the FOMC meeting and on the longer-term picture, fundamentals look bullish for the US currency. The market sentiment is averse to risk, making the greenback attractive as a haven currency. The dollar should be especially strong against commodity-related currencies due to the slump of prices for raw materials, led by crude oil. At the same time, it is not impossible for the currency to stay in a corrective mode till the end of the year considering how much strength it has spent in the recent impressive rally that has lasted for many months.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

Forex News

Dollar Gains vs. Major, Unable to Beat Yen

By , December 15, 2014 2:43 pm

Panoramic view on many US hundred-dollar billsThe US dollar rallied against its major counterparts today as a positive industrial output report fueled speculations about an early interest rate hike from the Federal Reserve. The greenback was unable to outperform the yen.

US industrial production grew 1.3 percent in November, exceeding analysts’ expectations. Moreover, the October’s reading was revised from a 0.1 percent drop to an increase by the same rate. The data reinforced the view that the Fed’s policy statement released this week should be hawkish.

The dollar was strong as a result of the positive fundamentals, especially against commodity currencies that were suffering from decline of oil prices. The US currency failed to beat the yen, which rallied following the parliamentary elections over the weekend.

EUR/USD dropped from 1.2471 to 1.2436 as of 21:07 GMT today, touching the low of 1.2414 intraday. GBP/USD declined from 1.5722 to 1.5636. USD/JPY fell from 118.67 to 117.69.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

Forex News

Dollar Loses Bullish Momentum, Falling Over Week

By , December 13, 2014 11:01 am

Mix of US dollar billsThe US dollar lost its bullish momentum, falling this week. Macroeconomic reports from the United States were good for the most part, indicating continuing growth of the US economy, but even they did not help the currency.

This week was marked by risk aversion due to falling oil prices and concerns about the global economy and China’s growth in particular. Macroeconomic data showed that inflation is slowing in the Asian nation. Such concerns led to speculations that the Federal Reserve may postpone its planned monetary tightening. This, in turn, weakened the US currency.

While the dollar lost its bullish momentum, the Japanese yen got rid of its bearishness, rising against other major peers. Analysts speculate that perhaps the greenback found its top while the yen bottomed, at least in the near term.

EUR/USD jumped 1.3 percent from 1.2286 to 1.2454, bouncing from the weekly low of 1.2247 — the lowest since August 2012. GBP/USD soared from 1.5569 to 1.5719. USD/JPY dropped 2.3 percent from 121.58 to 118.65.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

Forex News

Australian Dollar Retreats After Rally

By , December 11, 2014 4:35 am

A heap of Australian dollarsThe Australian dollar went down after the initial spike today. The currency rallied after the surprisingly good employment report but was unable to sustain gains. The Aussie traded below the opening level against the US dollar and the euro but hangs above the opening versus the Japanese yen.

Australian employers added as much as 42,700 jobs in November compared to the previous month’s increase of 15,200. Still, the unemployment rate ticked up by 0.1 percentage point to 6.3 percent.

The positive data alleviated concerns about a potential interest rate cut that were plaguing the Aussie earlier. As a result, the currency rallied after the report. Yet the upward momentum was not particularly strong, and the Australian dollar retreated as of now.

AUD/USD traded at 0.8304 as of 9:01 GMT today after the earlier rally from 0.8315 to 0.8375. EUR/AUD dropped from 1.4966 to 1.4908 before trading at 1.4989. AUD/JPY was up from 97.96 to 98.18 while its daily high was at 98.69.

If you have any questions, comments or opinions regarding the Australian Dollar, feel free to post them using the commentary form below.

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