- US Dollar Index declines on US government shutdown
- Aussie strength on RBA rate hold pushes USD lower
A look back at the past 24 hours of Forex trading using movements in the US Dollar Index:
US Dollar 15-Minute 08:00 09/30 to 08:00 10/01 EST
Although US equity indexes are trading higher, seemingly ignoring the prevalent government shutdown headlines, the US Dollar has shown the largest daily range today in over a week, following a period of low volatility trading. The US Dollar also set a new weekly low and dipped below 10,500 overnight.
The decline in the greenback began at the start of yesterday’s New York session, following a headline suggesting stability for the Italian government, as explained in yesterday’s graphic rewind. However, those US Dollar losses were soon erased during the remained of the New York session.
The US Dollar began an overnight selloff in the two hours before the midnight start to the US government shutdown. The dollar may have suffered as the last chances for lawmakers to come to an agreement on a spending bill failed to yield an agreement.
That overnight selloff continued during the Tokyo session, when the RBA announced it would keep the interest rate unchanged, giving the Aussie strength against the US Dollar. Greenback weakness continued before the London open, as the government shutdown effects may have still been making its way through the Forex markets.
Finally, Prime Minister Abe officially announced that Japan will raise its consumption tax beginning in April, sending the Yen higher against all pairs, including the US Dollar. That was the only major event to move the US Dollar in the London session, as a number of European economic releases failed to significantly impact the currency markets.
New to Forex? Watch this video
Source: http://dld.bz/cR9QP
No comments:
Post a Comment