Aussie Jumps with Risk Appetite, Loses Gains

The Australian dollar jumped today after investors’ appetite for risk bolstered riskier currencies. Yet the Aussie trimmed gains against the Japanese yen and retreated versus the US dollar as of now.

News that Lawrence Summers is no longer a candidate for the office of Federal Reserve Chairman together with less-than-shiny economic data from the United States reduced probability of smaller stimulus. This resulted in optimism and willingness to risk among Forex traders. Yet they were worried that tomorrow’s minutes of the last Reserve Bank of Australia policy meeting may reveal plans of the central bank to ease monetary policy, hurting the performance of the Australian currency.

AUD/USD fell from 0.9327 to 0.9312 as of 20:01 GMT today after rising to 0.9390 (the highest since June 19) earlier. AUD/JPY retreated from the daily high of 92.79 to 92.30 after opening at 92.06.

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Dollar Rebounds After Decline

The US dollar slid yesterday, but managed to rebound and advanced today even though Forex traders felt uncertainty about future monetary policy of the US central bank.

The news about withdrawal of Treasury Secretary Lawrence Summers from the race for the office of Federal Reserve Chairman shook the Forex market, igniting speculations that monetary policy will remain accommodative for a long time. Negative fundamental reports supported such outlook. The Empire State Manufacturing Survey showed that the general business conditions index edged down from 8.2 in August to 6.3 in September instead of rising as was predicted by analysts.

The greenback slumped initially on the negative fundamentals, but rebounded later. It still remains below the last week’s closing level against most majors, but far above the opening level of this week.

EUR/USD traded at 1.3326 as of 2:11 GMT today after dropping from 1.3351 to 1.3332 yesterday. GBP/USD slid from 1.5934 to 1.5894 on the previous trading session and remained near this level on today’s session. USD/JPY advanced from 99.05 to 99.24.

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Dollar Ends Week & Month with Gains

The US dollar rallied this week and ended the month with gains against the majority of its most-traded peers as speculations about potential quantitative easing tampering in September continued to push the currency up.

As was expected, the dollar was unsure where to go at the start of the week and was unable to maintain rally. Yet it quickly found a reason to resume its advance: a potential war in Syria. Of course, positive domestic fundamentals also played in favor of the US currency, increasing likelihood of QE reduction next month. Concerns about Syria eased by the weekend, but this did not prevent the greenback from retaining gains.

USD was trading sideways versus EUR as the week began, but dropped sharply in the second half. The currency’s movement against GDP was more straightforward as it was rising for almost the whole week. USD demonstrated different performance versus JPY as it plunged on Tuesday and was attempting to rally for the rest of week. USD/JPY ended the week with relatively small loss, but loss nonetheless.

EUR/USD sank from 1.3382 to 1.3215 over the week. GBP/USD was down from 1.5562 to 1.5495, while its weekly low was at 1.5426. USD/JPY slid from 98.54 to 96.81, but bounced to close at 98.16.

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US Dollar Gains on Commodity Drop, Economic Gains

Some US one-dollar bills

US dollar is heading higher today, gaining as better than expected economic data supports the greenback. Commodities are lower today, and a gold price below $1,400 an ounce is also helping the dollar in Forex trading.


Greenback is gaining today, thanks in large part to the unexpectedly good economic data just released. US GDP increased by 2.5 per cent in the second quarter of 2013, up from the initial estimate of 1.7 per cent. This better than expected figure is, once again, fueling speculation that the Federal Reserve will have to start tapering its asset purchases relatively soon.

Economic data is fueling the US dollar’s gains today, but that’s not the only think helping the greenback. Uncertainty surrounding Syria, as well as drops in commodity prices are helping as well. Gold prices are lower, dropping back below $1,400 an ounce, and oil prices are heading a little lower as well, in spite of the difficulties in the Middle East.

At 14:17 GMT the US dollar index is higher, rising up to 82.1110 from the open at 82.0010. Dollar is up against most of its major counterparts. EUR/USD is down to 1.3207 from the open at 1.3241. GBP/USD is also lower, dropping to 1.5476 from the open at 1.5504. USD/JPY is one of the few instances of a lower dollar, dropping to 98.2210 from the open at 98.3520.

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UK Pound Gets Help from Mark Carney

Stacks of coins and a fan of pound notes

UK pound is getting a little help today, thanks to BOE Governor Mark Carney’s comments yesterday. While the pound is struggling against the US dollar, it is higher against the euro and the yen today.

Yesterday, making his first official policy statement as the Governor of the Bank of England, Mark Carney said that it wasn’t reasonable to expect that they could devalue into prosperity. This statement is being taken as a sign that more quantitative easing probably isn’t on the way for the UK pound, even though interest rates are likely to stay low for some time.

Thanks to that news, along with better economic data regarding the United Kingdom, the pound is performing pretty well against some of its major counterparts. Pound is down against the dollar, mainly because the dollar is surging on safe haven demand with uncertainty in Syria. However, the pound is higher against the euro and the yen today.

For now, the pound looks mostly bullish. With expectations that the asset purchase program won’t be increased, and with hopes for the economy, there is little to hold the pound back.

At 14:11 GMT GBP/USD is down to 1.5507 from the open at 1.5527. EUR/GBP is lower, dropping to 0.8539 from the open at 0.8592. GBP/JPY is up to 152.3980 from the open at 151.5950.

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