Clicky

Published On: Fri, Jun 21st, 2013

Dollar expected to strengthen further on the Federal Reserve policy

The rest is expected to finish the week with gains against all major peers on the back of the Federal Reserve’s announcement it will withdraw its monetary stimulus program by the middle of 2014. The Federal Reserve said it will look to reduce the amount injected into the US economy over a period of time, with the first reduction expected to take place off to the September 17th and 18th meeting of Fed policy makers.

The Federal Reserve’s announcement which was made just over 24 hours ago has rejuvenated daughter, driving it higher as concerns over the dilution of the currency all but ended – emphasized by the 0.6% gain that the dollar made on The Dollar Index. While many analysts predict that the dollars biggest advance has already been made, with the currency currently buoyed by the prospects of reduced (and eventually withdrawn) monetary stimulus, they do also expect to see the dollar make consistent gains over the next few days.

Due to the monetary stimulus package that has recently been unleashed by the Bank of Japan, the Japanese yen has been the dollars most discussed peer. With the governor of the central bank in “the land of the rising sun” expected to address the press towards the backend of the trading session in Tokyo regarding stimulus, the markets and the strength of the yen, traders will be on their toes and putting his words under extreme scrutiny as they look for signs of weakness, or strength, in the Japanese economy.

The USD/JPY pair ended a fourth consecutive day with an advance, ending at 97.3100. As is common during times of economic uncertainty, the Japanese yen is strengthening due to the relatively self-sufficient nature of the nation’s economy and their ability to handle their deficit internally.

Share Button

About the Author

- Gregory previously worked for a leading financial news publication and is now assistant news editor of financialtrading.com.

Recent Posts

Pepperstone

June 9, 2020, Comments Off on Pepperstone

HYCM

February 11, 2020, Comments Off on HYCM

CoreSpreads

June 10, 2019, Comments Off on CoreSpreads