LONG the US Dollar was a trade that for much of 2013 was a consensus view, but to many this trade failed despite the backdrop of a stronger US economy and the Fed in the wings to taper.
The U.S. dollar remains under pressure today as ADP Employment Report indicates the U.S. jobs grew by 116k compare to expectations of 180k new jobs.
Welcome to another see-saw day in the currency markets as traders now react to yesterday’s positive U.S. Service Sector Report – the fastest growth rate in five months. Traders are now reexamining their view/speculation on when and how much the Federal Reserve will taper.
As traders begin their morning rituals we find the U.S. dollar moved higher against the Japanese yen after official’s released disappointing Industrial Production results.
After a string of higher stronger U.S. dollar session this morning we find the U.S. dollar weaker against the majors as traders prepare for Federal Reserve’s June meeting minutes release along with the highly anticipated Federal Reserve Chairman Ben Bernanke speech.
The currency battle continues on with market participants navigating the slew of fundamentals and technicals.
As we begin another week of trading we find the U.S. dollar stronger against the majors as demand for the U.S. dollar carries over from last week’s comments from Fed Chairman Ben Bernanke said the Federal Reserve could begin to taper its asset purchasing program towards the end of the year and be out of the market by the middle of 2014 if the economy continues to improve.
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.
I wanted to provide a quick update on trade that keeps giving as we begin a new week of trading. The U.S. dollar continued its move higher during the Asian session and remains basically flat during the start of the U.S. session the as pair approaches the 100.00 level.