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Parity The Parity JustTitle:
Dollar tries out firmer ground
(Reuters) - The dollar gingerly tested firmer ground on Tuesday after a bout of choppiness and players did not rule out an eventual 1.5 cent retreat by the euro if some long positions grew stale and unwound ahead of expected U.S. easing.
With quantitative easing from the Federal Reserve now well priced-in ahead of its November 2-3 meeting, currencies have broken higher ground against the dollar, with the euro topping $1.4160 last week and the Australian dollar testing parity.
But squeezing out more gains is likely to be tough until the market sees how sizeable QE will be, with one trader saying, for Tuesday at least, that short-term players were simply flipping positions within tight ranges.
The euro has failed to clear $1.4000 again since Friday's surge above $1.4100 and this was seen ...
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Firm dollar halts charge into stocks and commodities
(Reuters) - The battered dollar rose on Monday, edging further away from a 10-month low, while Asian stocks pulled back from a two-year high as markets awaited details of a widely expected easing in U.S. monetary policy.
Major European stock markets opened lower, with Britain's FTSE 100 .FTSE down 0.3 percent, France's CAC 40 .FCHI down 0.5 percent and Germany's DAX .GDAXI falling 0.4 percent.
Federal Reserve chief Ben Bernanke cemented expectations on Friday of more U.S. stimulus to fend off deflation, prompting a reversal of trades that had been pushing the dollar lower and most Asian stocks higher for weeks.
The prospect of the Fed pumping billions of dollars into its economy has sparked huge capital flows into high-yielding emerging markets, pushing up their currencies and prompting ...
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Dollar index off lows on doubts how far Fed will ease
(Reuters) - The U.S. dollar bounced from a 10-month low against a basket of currencies on Monday, as investors trimmed bearish bets against the greenback on some uncertainty how much easing the Federal Reserve will resort to.
The greenback extended a rebound that started late last week, with the euro retreating from a 8-1/2 month high and the Australian dollar backing off from Friday's peak above parity that was the highest since it was floated in 1983.
Traders said short-term speculative and model accounts were active earlier in the session as the euro fell to as low as $1.3856. Next downside targets are channel support at $1.3825 and then the October 12 low of $1.3775.
The dollar index .DXY, which rose 0.5 percent to 77.441, was seen as needing a move above its October 12 high of 77. ...
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QE Speculation Leads to Broad-based USD Weakness
The Week Ahead
Highlights
* QE speculation leads to broad-based USD weakness
* The UK's deficit plan under the microscope
* MPC minutes crucial for sterling in the short-term
* Europe's peripheral concerns put to bed for now
* BoC likely to hold steady on rates, growth concerns
* Key data and events to watch next week
QE speculation leads to broad-based USD weakness
The markets have been fixated on the potential of further Fed easing measures in the form of a second round of asset purchases or 'QE2'. This past week gave a lot of clues into the Fed's thinking with the release of the September 21 FOMC meeting minutes and Fed Chairman Ben Bernanke's speech at Friday's Boston Fed conference. The meeting minutes showed that 'many' on FOMC noted too-slow growth and ...
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Mid-Terms Key to USD Bounce?
FX Strategy Weekly
Market Outlook
=> USD priced for QE2 after Bernanke, pro-risk flows weigh
=> GBP: MPC minutes ahead, policy bias still neutral?
Fed chairman Bernanke implicitly admitted in his Boston speech that the Fed was likely to push ahead with more QE on Nov 3 as risks of deflation are currently "higher than desirable". The limited scope for US short end yields to fall suggests that USD downside may now be limited. However, with QE2 now effectively priced in, the risk of a counter trend move cannot be ruled out, though a leveraging up of G10 and EM currencies threaten to squeeze the USD lower still backed by positive US Q3 company earnings and a rally in commodities. In general, a combination or reasonable US activity data and a Fed commitment to more accommodation should be ...
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The Weekly Bottom Line: 10/18/2010
HIGHLIGHTS OF THE WEEK
United States
* Tuesday's release of the September 21st FOMC meeting minutes showed broad based support for using quantitative easing to stimulate growth if inflation remains subdued and the unemployment rate fails to decline. It is less clear whether or not a consensus had been established at the September meeting for providing additional stimulus as soon as November
* Ongoing softness in the September data, including today's weak CPI report, have increased the chances of action in November
* Also, financial market moves have put additional pressure on the Fed to act in November
* The most likely outcome will be the announcement of incremental Treasury purchases, starting with an initial move in November between $250 billion and $350 billion
...
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USD strengthening, as investors re-think their short positions
MORNING BRIEFING: USD strengthening, as investors re-think their short positions
What’s new:
USD: Greenback staging a comeback this morning
United States: Fed’s Bernanke tending towards QE
United States: Volume and Timing of further easing keeps investors guessing
Aussie: Aussie and kiwi hit by what seems to be a round of profit taking
Today:
Rates in Asia and Indices:
EURUSD: 1.3983 - 1.3855.
USDCHF: 0.9639 – 0.9576.
GBPUSD: 1.6004- 1.5862.
EURJPY: 113.84 – 112.49.
USDJPY: 81.49 – 81.13.
DowJones: 11’062.78 -0.29%
NASDAQ: 2’468.77 +1.37%
S & P 500: 1’176.19 +0.2%
Nikkei: 9’498.49 -0.02%
Shanghai: 2'955.23 -0.54%
Gold: $ 1'360.3
Crude Oil: $ 80.64
Comments:
US Dollar continued to strengthen during Asian trading this morning. This strengthening was also visible Friday ...
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Dukascopy Morning Forex Overview: 18/10/2010
Previous session overview
The euro fell against the dollar and yen in Asia Monday as investors sold the common currency following dovish comments from European Central Bank president Jean-Claude Trichet over the weekend.
Trichet on Sunday pushed back against hawkish remarks from governing council member Axel Weber last week. Weber had said the central bank shouldn't wait long to withdraw from its extraordinary stimulus and should phase out its bond-buying program, but Trichet said the majority of the governing board does not agree with that view.
At 0450 GMT, the euro was at USD1.3892, down from USD1.3974. Dealers said short-term investors were selling the common currency after it retreated earlier in the day below USD1.3920, which many had considered a technical support level. Market ...
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Aussie Retreats After Reaching Parity with Greenback
The Australian dollar traded at parity with its US counterpart today before retreating on the speculation that the Aussie rallied too fast.
The weakness of the greenback and the concerns for the US economy allowed the Australian dollar reach parity against the US currency for the first time. It looks like the traders haven’t got used to the idea of parity between these two currencies and unwilling to buy the Aussie at such high prices. The fundamentals haven’t changed, though, and the Australian currency has potential to rise further.
AUD/USD opened at 0.9944 and jumped as high as 1.0001 before retreating to 0.9951 as of 13:36 GMT.
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