lundi 16 mars 2015
Euro firm after mild bounce from 12-year lows, Fed in focus
Posted on 19:29 by nice news
The euro stood firm on Tuesday after soft U.S. data and edginess ahead of this week's Federal Reserve policy meeting dented the dollar's rally and helped the common currency pull out from 12-year lows.
The euro was steady at $1.0570 EUR=, having rebounded overnight from $1.0457, its lowest since 2003.
The euro has been under pressure since the European Central Bank activated its 1 trillion euro bond-buying quantitative easing scheme last week and drove euro zone bond yields to record lows.
It got some relief after Monday's weaker-than-expected U.S. manufacturing, industrial output and housing data pushed down U.S. debt yields and cooled the dollar's advance.
Traders see the market getting little nervous ahead of the Fed's policy-setting meeting on Tuesday and Wednesday.
Expectations have been rising that the Fed will drop the word "patient" from its statement on the timing of interest rate increases - a key factor behind the dollar's recent surge.
But some traders have also cautioned that the dollar's strength and its potential negative impact on the economy might be mentioned by the Fed.
"The focal point for the Federal Open Market Committee meeting still remains whether the 'patient' will be dropped or not, and another word might be used as a replacement," said Junichi Ishikawa, market analyst at IG Securities in Tokyo.
"But the dollar's recent strength, which is very much a political factor as well, may also get a mention and hurt dollar longs. It is a factor that participants will be keeping on the back of their minds," he said.
The dollar inched up 0.1 percent to 121.41 yen JPY=, stuck in a relatively narrow range since advancing to an
The euro was steady at $1.0570 EUR=, having rebounded overnight from $1.0457, its lowest since 2003.
The euro has been under pressure since the European Central Bank activated its 1 trillion euro bond-buying quantitative easing scheme last week and drove euro zone bond yields to record lows.
It got some relief after Monday's weaker-than-expected U.S. manufacturing, industrial output and housing data pushed down U.S. debt yields and cooled the dollar's advance.
Traders see the market getting little nervous ahead of the Fed's policy-setting meeting on Tuesday and Wednesday.
Expectations have been rising that the Fed will drop the word "patient" from its statement on the timing of interest rate increases - a key factor behind the dollar's recent surge.
But some traders have also cautioned that the dollar's strength and its potential negative impact on the economy might be mentioned by the Fed.
"The focal point for the Federal Open Market Committee meeting still remains whether the 'patient' will be dropped or not, and another word might be used as a replacement," said Junichi Ishikawa, market analyst at IG Securities in Tokyo.
"But the dollar's recent strength, which is very much a political factor as well, may also get a mention and hurt dollar longs. It is a factor that participants will be keeping on the back of their minds," he said.
The dollar inched up 0.1 percent to 121.41 yen JPY=, stuck in a relatively narrow range since advancing to an
Euro firm after mild bounce from 12-year lows, Fed in focus
Inscription à :
Publier les commentaires (Atom)
0 commentaires:
Enregistrer un commentaire