USD higher as investors expect an end of Fed stimulus program

The USD traded higher against the major currencies on Tuesday as growing sentiments that the Federal Reserve is about to taper its monthly bond-buying program by December or March at the latest provided economic indicators don’t disappoint. On Tuesday, EUR/USD was up 0.17% at 1.3429 mainly as a result of demand from bargain hunters. Last week, the Bureau of Labor Statistics reported that the U.S. economy added 204,000 jobs in October, high above expectations for an increase of 125,000. Also this week, official data indicated that the U.S. economy expanded 2.8% on year in the third...

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USD mixed to lower in a slow session as investors locked in gains

The USD traded on mixed to lower trend against the other major currencies in a slow session on Monday as investors locked in gains from Friday’s better than expected October jobs report. A day earlier, official data showed that the U.S. economy expanded 2.8% this year in the third quarter, high above expectations for 2.0% growth. On Friday, the Bureau of Labor Statistics reported that the U.S. economy added 204,000 jobs in October, high above expectations for an increase of 125,000 jobs. The figures boosted market sentiments that the Federal Reserve may soon declare its plans to scale...

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EUR/USD increases on U.S. shutdown and low service sector data

The Euro hit eight-month highs against the USD on Thursday after U.S. service-sector data failed to beat investors’ expectations. Today was the third day of the U.S. government shutdown which also reduced investors’ sentiment for the USD. Markets were also worried over how the political deadlock will affect negotiations to raise the U.S. debt ceiling, which is estimated to be reached by October 17. In U.S. trading hours on Thursday, EUR/USD increased 0.34% at 1.3626, up from a session low of 1.3578 and off from a session high of 1.3632. The pair was expected to find support at 1.3506 and...

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USD weak on U.S. shutdown and jobs report

The USD dropped to five-week lows against the Yen on Wednesday and continued to be under pressure against the other major currencies as a result of the US shutdown with no signs of a resolution to an impasse over federal funding. Also on Wednesday, a weak private sector jobs report which weighed on the currency. During U.S. morning trading hours, the USD dropped to session lows against the Yen, with USD/JPY decreasing 0.79% to 97.25. Markets were also affected by worries over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which is...

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USD low against the major currencies on U.S. government shutdown

The USD traded lower against the other major currencies on Tuesday, due to the U.S. government shutdown which impacted on investor demand for the coin. The Republicans have insisted on postponing the implementation of President Obama’s health care reforms as a condition for passing the budget, which resulted in a U.S. government shutdown. During European trading hours, the USD was reached session low against the Yen, with USD/JPY down 0.43% to 97.79. The USD dropped to eight-month lows against the Pound, with GBP/USD increasing 0.37% to 1.6244. Cable was expected to find support at...

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GBP/USD traded lower as investors locked in gains

The British Pound traded lower against the USD today, as investors locked in gains from Wednesday when the pound soared to eight-month highs against the USD. USD gains were also limited after yesterday’s announcement that the Federal Reserve left its stimulus program unchanged and did not reduce the 85 billion USD pace of its monthly asset purchases. Ben Bernanke, chairman of the Federal Reserve refused to commit to reducing bond purchases this year, claiming the stimulus program was “not on a preset course”. The Euro cut gains against the USD today, after the release of strong U.S....

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