Forecasts
Forex Guides
Members

EUR/USD Update – Dollar Strengthens as Investors Await Fed Minutes; Rupiah Slides



Good day forex traders and readers.

The EUR/USD had climb to test the 1.3450 region earlier as the demand for the single currency increased. However as we approach the release of the FOMC meeting minutes, it is apparent that the currency pair is receiving bearish pressure due to risk aversion.

Do take precaution as the speculation of the quantitative easing tapering by the US Federal Reserve can get pretty sentimental in nature. Read more about the current situation in the Bloomberg report below.

The dollar rose against the yen and the euro as investors awaited the release of minutes from the Federal Reserve ’s July meeting for signals on when policy makers will curtail monetary stimulus.

The U.S. currency extended gains against most of its major peers after sales of previously owned U.S. homes climbed in July to the fastest pace since November 2009. The greenback rallied for a third day versus the Australian and New Zealand dollars amid bets a reduction of bond purchases by the Fed will send funds flowing out of nations that offer higher yields. Indonesia ’s rupiah slumped to a four-year low and India ’s rupee fell to a record as emerging-market assets declined.

“The markets were definitely leaning more towards tapering and that it’s going to happen soon,” Sireen Harajli, a foreign-exchange strategist at Mizuho Bank in New York , said in a telephone interview. “If you see that debate going on in the minutes, which is very likely, and the markets will interpret it as being more hawkish, and we’re more likely to see a dollar strengthening.”

The dollar rose 0.4 percent to 97.63 yen as of 10:10 a.m. New York time after adding 0.5 percent. The U.S. currency rose 0.3 percent to $1.3383 per euro, halting a two-day decline. The euro advanced 0.1 percent to 130.67 yen.

The Bloomberg U.S. Dollar Index , which tracks the greenback against 10 major peers, rallied 0.4 percent to 1,024.10. Yields Rise

Treasury 10-year note yields approached the highest level in two years as commodities fell for a third day.

“We saw a little bit of a rise in yields in the U.S. over the past few days, and that has also been very bullish for the dollar,” Harajli said.

Purchases of previously owned houses advanced 6.5 […]

Invest In Yourself And Get Premium Analysis
Less than 20 cents a day
Major Currency Pairs Analysis
Forex Sentiment Analysis
Understand The Market
10 days money back guarantee

View Subscription Options

Would you like to connect?
Get notifications on new forecasts and articles.

Sign up to our emailing list and get your FREE Stop Losing and Start Winning in Forex Checklist!

Trending Forex Articles

  • EUR/USD Update – Dollar Strengthens as Investors Await Fed Minutes; Rupiah Slides
  • EUR/USD Gold CorrelationEUR/USD Update – Dollar Strengthens as Investors Await Fed Minutes; Rupiah Slides
  • EUR/USD Update – Dollar Strengthens as Investors Await Fed Minutes; Rupiah Slides
  • EUR/USD Update – Dollar Strengthens as Investors Await Fed Minutes; Rupiah Slides
  • EUR/USD Update – Dollar Strengthens as Investors Await Fed Minutes; Rupiah Slides
  • EUR/USD Update – Dollar Strengthens as Investors Await Fed Minutes; Rupiah Slides
TheGeekKnows