Nothing has changed dramatically as the US dollar barely moved against the euro in the yen in early Asian session despite warnings of further economic problems facing the US ahead which was stated by Fed chairman Ben Bernanke.
Bernanke stated yesterday that the outlook for the economy has worsened in recent months due to tight credit and that downside growth risks have increased. However the currency market did not react significantly to Bernanke's remarks and to this hour the currencies seem stuck in thin trading.
Moving on, the euro seems to be the lucky one today as it is gradually inclining against the US dollar pushing the pair to record a high of 1.4664 and a low of 1.4631
Stronger economic data and a hawkish quarterly inflation report have reduced the chance that the Bank of England will ease interest rates aggressively and at this hour the pound is trading within thin ranges dragging the pair with it to record a high of 1.9722 and a low of 1.9679.
Meanwhile, the yen fell against the US dollar after Asian stocks recorded losses promoting investors to add to holdings of higher-yielding assets performing what we call carry trades thus supporting the upside move of the pair in which it recorded at this hour a high of 108.31 and a low of 107.79
Join the Discussion