FX Live Show Member's Forum

Recent top 3 Signal Service Results: EURAUD Sell order 200+ pips (Closed) | AUDNZD Buy order 145 pips (Closed) | CHFJPY Sell order 150+ pips (Closed)

Connect with us
Facebook Twitter Google +

Brokers

Central Bank Rates
News

FXLiveshow Commentary - Market News and Forecast

Dollar falls vs yen on U.S. policy doubts
by Administrator, 24th February 2017

The U.S. dollar fell to a more than two-week low against the Japanese yen on Friday as investors doubted the likelihood of swift tax reform and a quick spending boost from U.S. President Donald Trump's administration.

On Thursday, U.S. Treasury Secretary Steven Mnuchin suggested that much work was still needed on key elements of a tax reform plan, one of the policies investors had anticipated would spur inflation and drive up U.S. interest rates.

Analysts noted that Federal Reserve meeting minutes released on Wednesday reinforced doubts about a rate hike next month since voting members showed much less urgency to tighten credit.

The dollar fell as much as 0.6 percent against the safe-haven yen to 111.95 yen. Its first dip below 112 yen since Feb. 9 put the greenback on track for its second straight weekly loss against the Japanese currency, of about 0.8 percent.

"Markets are sort of growing a lot more cautious on prospects for U.S. fiscal stimulus, and consequently I think they are now sceptical of the Fed hiking substantially over the next two years," Vassili Serebriakov, FX strategist at Credit Agricole in New York said.

The euro slipped 0.2 percent against the dollar in afternoon trading to a session low of $1.0558. That put it on course for a 0.5 percent decline since Friday, for the third straight weekly slide.

The euro's modest drop helped put the dollar index , which measures the greenback against a basket of six major currencies, on course for its third straight weekly gain. The gain was small at just 0.2 percent, with the index last up only slightly at 101.110 after recovering from a one-week low of 100.660 earlier.

The index hit a 14-year high of 103.820 at the start of the year, largely on the hopes surrounding Trump's avowed pro-growth policies.

"Ultimately, outside of the U.S. there is reflation happening and data is looking strong, so perhaps it's time to just take some dollar longs off the table," said UBS Wealth Management currency strategist Geoffrey Yu in London.

The dollar was up 0.1 percent against the Swiss franc at 1.0073 francs, near a session high of 1.0079 francs.


Get weekly Trade Analysis Newsletter
100% FREE



Advertisement

Forex Live Quotes

DreamHost


Connect with us Recent Analysis New Strategies Signal Results
       
Contact our Team Connect with Facebook Follow us on Twitter We're on Google+ 13th Mar to 17th Mar 2017 06th Mar to 10th Mar 2017 27th Feb to 03rd Mar 2017 20th Feb to 24th Feb 2017 Reversal Pinbar Fakey Trading System Inside Bar Trading Strategy Support and Resistance 209+ pips on EURAUD sell 175 pips on GBPAUD sell 140+ pips on AUDUSD buy 490 pips on XAUUSD buy
  13th Feb to 17th Feb 2017