8 Apr 2014
Dollar remains under pressure
FXStreet (London) - Risk remains under pressure today, though the market lacks any real drivers at the moment. Much of the bearishness in risk markets and equities in particular comes ahead of US first quarter earnings season, which kicks off today.
Bearish dollar
USD has seen some heavy selling throughout the morning, falling against all of its major pairs. The dollar is down 0.89 percent against the yen with USD/JPY currently trading at USD102.1800. GBP/USD is up 0.81 percent to USD1.6742– a one-month high.
Quiet calendar
We have another light afternoon today, with no top-tier data coming from the US. Instead, attention will be on the Federal Reserve’s federal open market committee meeting minutes due tomorrow. Expectations are that the minutes will show the Fed remains committed to maintaining its current schedule of quantitative easing tapering save for a black swan event. In its last meeting, the FOMC voted to cut its monthly asset purchases to USD55bn, despite some signs of weakness in the US economy following disruptive weather conditions and below normal temperatures.
Sterling rallies
Sterling remains bullish following this morning’s stronger-than-expected industrial production numbers. According to the Office For National Statistics, February production increased by 0.9 percent on January, boosted by a surge in factory outputs. Manufacturing increased by the most in eight months. Production increased 2.7 percent year-on-year and manufacturing rose 3.8 percent. GBP/USD is currently trading at USD1.6742, up 0.81 percent, while sterling has climbed 0.39 percent agains the euro to GBP0.8243.
Bearish dollar
USD has seen some heavy selling throughout the morning, falling against all of its major pairs. The dollar is down 0.89 percent against the yen with USD/JPY currently trading at USD102.1800. GBP/USD is up 0.81 percent to USD1.6742– a one-month high.
Quiet calendar
We have another light afternoon today, with no top-tier data coming from the US. Instead, attention will be on the Federal Reserve’s federal open market committee meeting minutes due tomorrow. Expectations are that the minutes will show the Fed remains committed to maintaining its current schedule of quantitative easing tapering save for a black swan event. In its last meeting, the FOMC voted to cut its monthly asset purchases to USD55bn, despite some signs of weakness in the US economy following disruptive weather conditions and below normal temperatures.
Sterling rallies
Sterling remains bullish following this morning’s stronger-than-expected industrial production numbers. According to the Office For National Statistics, February production increased by 0.9 percent on January, boosted by a surge in factory outputs. Manufacturing increased by the most in eight months. Production increased 2.7 percent year-on-year and manufacturing rose 3.8 percent. GBP/USD is currently trading at USD1.6742, up 0.81 percent, while sterling has climbed 0.39 percent agains the euro to GBP0.8243.