1 Aug 2013
Session Recap: USD falls as the Fed keeps QE rate; AUD on free-fall
FXstreet.com (San Francisco) - Today's big news was the Federal Reserve's rejection to start tapering its bond buying program in the short term. The market assumed it as a victory in stocks but a hit to the US Dollar. After the Fed statement, the USD declined hard against its major competitors, especially against the Euro.
The EUR/USD climbed to 6-week highs at 1.3345 but the pair was unable to keep those highs and currently it is trading at 1.3300. Now market is focused on the ECB and the BoE who are expected to reiterate a dovish forward guidance. The EUR/USD
As Global Head of Currency Strategy at BBH Marc Chandler said in a recent report, "after rallying to almost $1.3340, the euro has come back off. This reflects a broader dollar recovery." Chandler believes that "after retreating since July 9, the dollar has found a near-term bottom."
The GBP/USD performed its 4th negative day in row with the pair touching 2-week lows at 1.5130 and closing around 1.5200. The USD/JPY remained in the same last 4-day range between 97.60 and 98.45, closing today at 97.85.
On the other hand, the Aussie collapsed further with the AUD/USD wrapping up its third negative day in row. Today the AUD/USD broken down the 0.9000 key level to trade as low as 0.8935, lowest since August 2010.
Main headlines in the American session:
US: ADP Employment Change rose by 200K in July
US Gross Domestic Product Annualized: 1.7% in 2Q
Canada: GDP expanded 0.2% MoM in May
Troika assures Cypriot bailout program on track
US: Chicago PMI rises less than expected in July
Fed keeps policy unchanged, slightly downgrades outlook
Full text of the FOMC statement July 31, 2013
Wall Street closes mixed on strong taking profits but best July in 3 years
The EUR/USD climbed to 6-week highs at 1.3345 but the pair was unable to keep those highs and currently it is trading at 1.3300. Now market is focused on the ECB and the BoE who are expected to reiterate a dovish forward guidance. The EUR/USD
As Global Head of Currency Strategy at BBH Marc Chandler said in a recent report, "after rallying to almost $1.3340, the euro has come back off. This reflects a broader dollar recovery." Chandler believes that "after retreating since July 9, the dollar has found a near-term bottom."
The GBP/USD performed its 4th negative day in row with the pair touching 2-week lows at 1.5130 and closing around 1.5200. The USD/JPY remained in the same last 4-day range between 97.60 and 98.45, closing today at 97.85.
On the other hand, the Aussie collapsed further with the AUD/USD wrapping up its third negative day in row. Today the AUD/USD broken down the 0.9000 key level to trade as low as 0.8935, lowest since August 2010.
Main headlines in the American session:
US: ADP Employment Change rose by 200K in July
US Gross Domestic Product Annualized: 1.7% in 2Q
Canada: GDP expanded 0.2% MoM in May
Troika assures Cypriot bailout program on track
US: Chicago PMI rises less than expected in July
Fed keeps policy unchanged, slightly downgrades outlook
Full text of the FOMC statement July 31, 2013
Wall Street closes mixed on strong taking profits but best July in 3 years