With only a few hours before the Federal Reserve releases its statement and traders get a snapshot of the Fed’s thinking and plans to taper or not to taper the U.S. dollar is basically flat holding its own against the euro and pound with slight tick lower on the yen and loonie.
It’s more of the same this morning with the U.S. dollar holding its strength against the yen, franc, pound, loonie, and Aussie dollar as traders turn their attention to Wednesday’s Federal Reserve meeting.
The U.S. dollar is higher against the Japanese yen or USD/JPY as currency traders begin the week with all eyes trained on the U.S. Federal Reserve meeting this week ending with Wednesday with the Fed Statement.
Central bank cloudiness and uncertainty has pushed and kept the GBP/USD near 4 month highs. U.S. dollar traders are watching the Federal Reserve closely as we approach next week’s meeting and FOMC statement on Wednesday.
With all the speculation surrounding whether the Federal Reserve will begin to tapper and whether central banks around the world will increase economic stimulus.
The GDP/USD climb higher this morning when the U.K’s Manufacturing Production report indicated that the production fell less than expected by 0.2% for the month of April. Digging into the report we find that Industrial Production actually was moved higher. Expectations were for 0.3% drop in overall production.
Friday’s non-Farm Payroll continues to prop up the U.S. dollar most notably this morning is the USD/YEN as traders breathe a sign of relief that the U.S. economy continues to be on a recovery track, albeit slow and sometimes painfully slow depending on the view.
Well here we are again the First Friday of the month which only can mean non-Farm Payroll day. At 8:30 a.m. today we will get another look at how well the U.S. economy created or lost jobs in the month of May.
The euro against the U.S. dollar held on its gains after the European Central Bank (ECB) announced it will maintain its current monetary policy and kept interest rates unchanged at its record low of 0.5%.
The U.S. dollar is stronger against the other major currencies this morning including the Japanese yen. After 8 sessions of the yen strengthening against the U.S. dollar this morning the U.S. dollar jumped over 0.68% to over 100.20.