Stock Market Watch

Forex Market Update: Dollar Index Down

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The U.S. dollar traded broadly lower against all major traded currencies on Thursday as uncertainty as to when and at what pace the Federal Reserve will scale down its bond purchase program weighed on the sentiment, prompting investors to cut positions and take some short coverings on assets such as gold.

The dollar Index, a measure on U.S. unit’s performance against a basket of six major traded currencies, fell 0.17% to 81.15. The Index is now at its seven-week low level.

Will the tapering start from September or latter, is one question which is keeping investors edgy.

Earlier this week, several top officials from the Federal Reserve said that the winding down of the asset purchases could be announced in any of this year’s remaining three open market committee meetings (FOMCs); however, a more hawkish tone by Chicago Fed President, Charles Evans and Dallas Fed President Richard Fisher had led to some uncertainty.

Both these officials said that the tapering could start as early as September.

Meanwhile, the Aussie dollar gained sharply against the U.S. dollar on Thursday. The Aus$, a commodity-linked currency gained after a trade data from China showed more-than-expected jump both in exports and imports in July.

China’s exports rose 5% while imports jumped 10% in July. Economists had expected a growth of 3% and 2%, respectively. In June China’s both exports and imports showed sharp contraction.

Currencies like Aussie dollar and Canadian dollar tends to gain when the economic outlook in heavy commodities consuming country like China improves significantly.








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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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