The Federal Reserve talk about tapering its monetary easing programs is getting louder and in turn speculation is ramping up as well. The U.S. dollar climbed higher against the majors on these comments and comments from John Williams, President of the San Francisco Fed.
The USD/JPY trade continues to be the currency pair that traders are piling into as the pair nears a 4 ½ year high.
Looking across the currency landscape this morning I wanted to circle back around to the USD/CAD currency pair this morning.
The U.S. dollar last week was stronger across the broad spectrum and continues to remain strong as we begin the new week.
During the overnight Asian session crude oil began to lose its footing and accelerated its slide during the early morning U.S. session heading into the weekend. Crude oil continues to fall more than 2.75% as of this story despite better than expected Initial Jobless Claims report.
U.S. Weekly Claims report show the number of people filing claims last week dropped to 323,000 down from previous report of 327,000 extending the positive sentiment for the U.S. job market and in turn supporting the U.S. dollar against the majors. The EUR/USD is currently trading around the 1.3134 or -0.14% lower ahead of the U.S. session.
The economic data teeter-totter ride continues with the teeter-totter pushing the euro higher on surprising better than expected German industrial output data eases concerns over the euro zone’s largest economy.
The euro vs the U.S. dollar or EUR/USD currency pair continues into the start of the new week in its narrow trading range and will likely remain in the trading range at least until in the U.S. session is fully online.
Between the Federal Reserve’s decision to keep the petal to the metal and European Central Bank’s decision to finally cut key interest rates to stimulate the euro zone economy traders saw an up – flat – down pattern over the past 3 trading sessions otherwise known as evening star candlestick pattern in the EUR/USD currency pair.