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Market Watch - Dollar stages recovery against yen, euro
Thursday, 16 October 2014
The dollar recovered against the yen and euro, but remained lower against most other rivals in relatively muted afternoon for currency traders on Thursday.
Investors weren’t eager to place directional bets (i.e. that the greenback would move higher or lower against other currencies), ahead of a planned speech by Federal Reserve Chairwoman Janet Yellen scheduled for Friday morning.
“The market is catching its breath and waiting to see what will happen in Asia and European trade [Friday] and [awaiting] Yellen’s speech tomorrow,” said Ken Wills, a currency strategist with USForex.
Yellen is set to speak at the Federal Reserve Bank of Boston’s conference on economic opportunity after touring a job center in the area.
The ICE U.S. Dollar Index a measure of the greenback’s strength against six rival currencies, traded at 84.9530 Thursday, compared to 85.1470 late Wednesday.
Trade in the euro Thursday was choppy, with the shared currency rising from $1.2770 to as high as $1.2835, before falling back to trade at $1.2804 Thursday afternoon, compared to $1.2816 late Wednesday.
The pound moved steadily higher against the dollar Thursday, trading at $1.6091, from $1.5989 late Wednesday.
The dollar registered only muted gains following speeches by two Fed presidents, Minneapolis Fed President Narayana Kocherlakota and James Bullard, the president of the St. Louis Fed.
While Wills characterized Kocherlakota’s speech as uneventful, stocks rallied after Bullard suggested that the Fed should consider extending its bond-buying program beyond October.
But Wills said he doubts Bullard’s remark would change Yellen’s mind ahead of her speech tomorrow.
“I would anticipate that she [Yellen] is going to stick with the steady message,” Wills said.
From: Market Watch
