Graphic Rewind: USD Erases Losses with BoE Propelled Pound Weakness
- US Dollar falls to a 2-day low in a quiet Tokyo session
- Greenback erases earlier-day losses with help of GBP decline on releases
A look back at the past 24 hours of Forex trading using movements in the US Dollar Index:
US Dollar 15-Minute 12:00 05/13 to 12:00 05/14 EST
The Dow Jones FXCM US Dollar Index bounced higher from a 2-day low on the back of BoE driven Pound weakness.
The greenback index declined 23 points over the Tokyo session and set a new 2-day low as London traders were coming online, despite a lack of significant news in Forex markets. Much of the losses were posted against the Australian Dollar.
However, those losses were mostly unwound through London trading, reflecting the 120 pip decline seen in GBP/USD trading on the release of two separate UK economic updates. First, the changed in employment beat expectations for the first quarter, although the rise in weekly earnings disappointed. Then, the BoE said in its Inflation Report that despite an improvement in growth, the interest rate may need to stay low for some time.
Trading then continued in a 10 point range above 10,450 through the New York session.
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-- Written by Baruch Spier, DailyFX Research. Feedback can be sent to firstname.lastname@example.org .
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.