Back
14 Sep 2013
Session Recap: The Dollar continues ‘missing in action’ ahead the FOMC meeting
FXstreet.com (San Francisco) - The US Dollar traded lower on Friday against its major competitors as the world’s reserve was hurt by the weaker than expected August retail sales report and preliminary September Michigan consumer confidence index. Overall, market players traded on risk appetite but focused on the next week's Fed Septaper meeting.
As FXstreet.com chief analyst Valeria Bednarik commented in a recent report, "nothing has been left out: all has been written, speculated, discounted and priced in over the past few months, when it comes to next FED movement." But the uncertainty continues as economic data seems not enough to let the 'tapering' be.
So, the Greenback, the currency that would rise to the infinity and beyond according to the market, has just lost 200 pips in the last week against the Euro, 350 pips against the Aussie and 1000 pips against the Sterling in the last two months. "Not enough" good economic data seems to be the key, as Bednarik says.
Back to the short term, the EUR/USD closed almost flat on Friday at 1.3297, performing its first positive week in the last three. The GBP/USD advanced for eighth day in the last 10 to the highest level since January at 1.5805. The Cable logged its seventh positive week since the beginning of July.
The USD/JPY declined for third day and extended losses from September 11th high at 100.60 to close today at 99.30. The AUD/USD declined for second day and it closed below the 0.9250 at 0.9240. It was the third daily decline in the last ten sessions but its second positive week in a row.
On commodities, Gold closed its third week of losses with a 4.3% decline, extending its drop from 1,432 reached on August 28th to break the 1,356 dynamic support and closing at 1,326. A must watch level as Blake Morrow, Chief Currency Strategist for Wizetrade, said in his Twitter account, "If gold closes 1,350 or below this week, that shallow 38% retrace and bear flag is a DOOZIE (sub 1000 in the coming months)."
Main headlines in the American session
US: Retail Sales up 0.2% in August
US: PPI rose 0.3% MoM in August
US: Reuters/Michigan Consumer Sentiment Index down to 76.8 in September
US: Business Inventories rise 0.4% in August
Wall Street closes the week with gains before the Fed's Septaper meeting
As FXstreet.com chief analyst Valeria Bednarik commented in a recent report, "nothing has been left out: all has been written, speculated, discounted and priced in over the past few months, when it comes to next FED movement." But the uncertainty continues as economic data seems not enough to let the 'tapering' be.
So, the Greenback, the currency that would rise to the infinity and beyond according to the market, has just lost 200 pips in the last week against the Euro, 350 pips against the Aussie and 1000 pips against the Sterling in the last two months. "Not enough" good economic data seems to be the key, as Bednarik says.
Back to the short term, the EUR/USD closed almost flat on Friday at 1.3297, performing its first positive week in the last three. The GBP/USD advanced for eighth day in the last 10 to the highest level since January at 1.5805. The Cable logged its seventh positive week since the beginning of July.
The USD/JPY declined for third day and extended losses from September 11th high at 100.60 to close today at 99.30. The AUD/USD declined for second day and it closed below the 0.9250 at 0.9240. It was the third daily decline in the last ten sessions but its second positive week in a row.
On commodities, Gold closed its third week of losses with a 4.3% decline, extending its drop from 1,432 reached on August 28th to break the 1,356 dynamic support and closing at 1,326. A must watch level as Blake Morrow, Chief Currency Strategist for Wizetrade, said in his Twitter account, "If gold closes 1,350 or below this week, that shallow 38% retrace and bear flag is a DOOZIE (sub 1000 in the coming months)."
Main headlines in the American session
US: Retail Sales up 0.2% in August
US: PPI rose 0.3% MoM in August
US: Reuters/Michigan Consumer Sentiment Index down to 76.8 in September
US: Business Inventories rise 0.4% in August
Wall Street closes the week with gains before the Fed's Septaper meeting