The following Forex news reports are the latest developments of the Forex market. The news reports are updated frequently and include all the events that affect the foreign exchange trading industry.
Following yesterday’s press conference held by Ben Bernanke, the chairman of the U.S. Federal Reserve Bank, who fielded questions on the likely direction of the U.S. economy, the U.S. Dollar slipped to new multi-year lows against major currencies.
In Asian trading today, the U.S. Dollar slipped broadly lower as markets ponder the likely outcome of today’s Federal Open Market Committee Meeting.
The common currency Euro slipped slightly against the U.S. Dollar in Asian trading today as Jean-Claude Trichet, the head of the European Central Bank, noted that he shares the same view as other central bankers that the a U.S. Dollar is in the best interest of the United States economy.
Despite the continued chance of debt restructuring in Greece which threatens to wreak havoc on the regional economy, the Euro rallied to a 16-month high against the US dollar as speculation increased that the ECB will continue to raise interest rates this year.
The U.S. Dollar Index remains hovered close to a 3-year low in light Asian trade, underpinned by the likelihood of prolonged low interest rates and a growing U.S. budget deficit.
Whetted investor risk appetite has pushed the U.S. Dollar Index to its lowest point in 3 years, and analysts expect that further decline in the index is likely.
After the Australian government proved that producer prices surpassed estimated prices, the Australian dollar climbed to a new high.
Commodity linked currencies, including the common currency Euro and the Australian Dollar, rebounded in Asian trading today with the Euro rising against the U.S. Dollar to $1.4387, a gain of 0.4%.
The U.S. Dollar edged slightly lower against the Japanese Yen in Tokyo trading as investors pared away their carry trade positions, but most analysts expect that move will be short-lived with hedge fund operators and Japan-based life insurers positioning themselves ahead of what is likely to be another Yen slide.
In Asian trading today, as investor focus returns to Eurozone fiscal problems the common currency Euro extended earlier losses against the greenback after failing to break above key resistance.
According to some analysts, the divergence of the Federal Reserve’s monetary policy from that of the European Central Bank’s is what is driving the disparity between the U.S. Dollar and the common currency Euro.
The U.S. Dollar Index slipped to a new 16-month low in Asian trading today as investor speculation that the U.S. Federal Reserve Bank might alter its currently loose monetary policy grows more remote.
The U.S. Dollar rose against the Japanese Yen in Tokyo trading today as pension fund operators in Japan, as well as Japanese importers, bought the greenback heavily.
It’s been a month since the major earthquake that shook Japan, but a recent, smaller earthquake is causing the Yen to strengthen further.
The Japanese Yen slipped lower against the common currency and the Australian Dollar in Asian trading today, and analysts expect further weakening as risk appetite increases, generally.
