Stock Market Watch

Forex Market Update: Euro Down Against Dollar, Dollar Index Rises

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The euro fell against the U.S. dollar on Thursday as investors chose to cut positions on the common currency ahead of the policy rate statement from the European Central Bank (ECB).

It is widely expected that the ECB will reaffirm its commitment towards accommodating monetary policy.

As a result, the U.S. dollar found some support. Earlier today, the dollar index fell to its six-week low after the Federal Reserve offered no clue on when it intends to scale down its asset purchase program.

At last check, the euro fell 0.48% to trade at  $1.3238, falling from its six-week high of $1.3345 hit on Wednesday after the dollar sunk following Bernanke’s dovish remarks.

The Fed chairman said that the bank would keep buying $85 billion worth bonds per month as it believes that inflation level is under control even as the economy shows a “modest” growth.  The statement holds lot of significance because so far the Fed has been consistently saying that the economy was showing a reasonable growth.

“The Fed seems to have downgraded their overall economic assessment, thus capping the dollar,” said Minori Uchida, chief currency analyst at the Bank of Tokyo-Mitsubishi UFJ while speaking to Reuters.

The dollar Index, a gauge on U.S. unit’s performance against a basket of six major traded currencies, was up 0.41% to 82.00.

The U.S. dollar could climb further should the Friday’s non-farm payroll numbers turn out better-than-expected.








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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