Graphic Rewind: US Dollar Erases Losses on Fear Abatement
- US Dollar rises slightly higher as fears seem to calm
- The Greenback gains against the Yen following exports decline
A look back at the past 24 hours of Forex trading using movements in the US Dollar Index:
US Dollar 15-Minute 17:00 10/20 to 12:00 10/21 EST
Want to trade with proprietary strategies developed by FXCM? Find out how here.
The Dow Jones FXCM Dollar index traded higher in today’s session, as fears of no-taper and another debt deal crisis seemed to ease over the weekend. Bloomberg surveyed economists now expect a taper of Fed stimulus to only be started in March, giving a lot of time for a surprise taper to send the price of greenback higher.
The first major release of the new week was a disappointing Japanese trade balance and rise in exports, which sent the US Dollar higher against the Yen. Japanese prices have shown initial signs of inflation, and they must hit the 2% inflation target, or else the BoJ may add to its current stimulus plan. Therefore, all Japanese economic releases are considered in the context of how it will affect inflation.
The US Dollar trended higher over the European session. However, those gains were mostly erased after the release of US existing home sales that both disappointed expectations for today’s release for September and revised lower the reported home sales in August.
Charts created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to email@example.com .
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.