Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
Story Views
Now:
Last hour:
Last 24 hours:
Total:

FOREX-Dollar rises ahead of Fed statement, Yellen debut

% of readers think this story is Fact. Add your two cents.


FOREX-Dollar rises ahead of Fed statement, Yellen debut

    Published: Wednesday, 19 Mar 2014 | 10:54 AM ET

By: Michael Connor

* Dollar rises against yen and euro


* Fed expected to continue tapering its bond-buying stimulus


* Canadian dollar drops as sterling recovers vs US dollar


(Adds quotes, updates prices; changes byline and dateline, previous LONDON)


NEW YORK, March 19 (Reuters) – The dollar got a lift on Wednesday from expectations the Federal Reserve will look beyond the drag of a harsh winter on America’s economy and keep unwinding its monetary stimulus.


The greenback’s gains against the euro and yen were held back by some trepidation before Janet Yellen’s inaugural policy review as Federal Reserve chief, traders said.


The Fed is widely expected to reduce its monthly bond-purchase program by a further $10 billion at the end of its two-day meeting. Yellen, widely regarded as a dove, is due to address a news conference later in the day.


Many in markets expect the Fed to amend its forward guidance on policy, assuring investors that interest rate hikes remain distant despite unemployment easing faster than expected.


“For the Fed to light a fire under the dollar it would tend to take a less dovishly worded statement or any hint from the Fed that short-term rates could rise sooner than current forecasts of around mid-next year,” Western Union Business Solutions senior market analyst Joe Manimbo said in a note.


The dollar edged up 0.13 percent to 101.55 yen, staying above a one-month low of 101.20 yen hit on March 3. The euro fetched $1.3916, down 0.14 percent on the day but not far from last Thursday’s 2-1/2-year high of $1.3967.


The dollar index was up at 79.49, a gain of 0.09 percent.


“The key thing will be whether there will be any change in the timing of rate hikes by the Fed from next year,” said Jeremy Stretch, head of currency strategy at CIBC World Markets.


“I am not convinced the Fed is ready to materially change guidance and we will see a very even-handed Yellen. All of which leaves investors looking to second-quarter U.S. data before taking fresh positions in the dollar.”


The Fed has said it will not raise rates until joblessness falls to at least 6.5 percent, a pledge policymakers thought would hold until at least mid-2015. But it hit a five-year low of 6.6 percent in January, before rising to 6.7 percent in February.


Expectations Yellen will pursue a broadly dovish stance have helped rein in U.S. Treasury yields and this, in turn, has undermined the attraction of the dollar for investors.


The U.S. dollar, though, hit its highest since late January against the Canadian dollar at C$1.1196. Selling in the currency gathered pace after Bank of Canada Governor Stephen Poloz said on Tuesday Canada could face a prolonged period of sluggish growth and lower interest rates.


FOCUS ON STERLING


Sterling rose as high as $1.6653, rebounding from a one-month low struck on Tuesday with help from data showing wages ticking higher and a steadily improving jobs market. It stood at %1.6611 in midmorning New York trade.


The number of Britons claiming jobless benefits fell more than expected while wages rose 1.4 percent year-on-year, which though higher than forecast was still below inflation.


Finance minister George Osborne, due to present the UK annual budget later on Wednesday, is expected to stick to his plan to fix public finances. This will keep the onus on the Bank of England to keep monetary policy loose to ensure growth.


“In order to keep the pressure on the budget deficit, a continuation of austerity can be expected from the government,” said Jane Foley, senior currency strategist at Rabobank.


“However, with the election a little over a year away, some crowd pleasers are also likely and this could lend the pound some support.”


And while the safe-haven yen lost ground, investors remained cautious over tensions in Ukraine. Anxiety eased somewhat after Russian President Vladimir Putin said on Tuesday he did not plan to seize other regions of Ukraine, after Crimean citizens on Sunday voted to be annexed by Moscow.


(Additional reporting by Anirban Nag in London; Editing by Chris Reese)

http://www.cnbc.com/id/101507505


Source: http://nesaranews.blogspot.com/2014/03/forex-dollar-rises-ahead-of-fed.html



Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.


LION'S MANE PRODUCT


Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules


Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.



Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.


Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.