Jul 26 2013

Extending a third-straight weekly decline, the Dollar index has fallen down. On the speculation, Federal Reserve will be reassuring the investors at upcoming week’s meeting that the policy will remain accommodative or not.   

The world’s strongest currency faced decline against 15 of its 16 major counterparts since the mid of July before the reports predicted an expansion of economic growth in the second quarter. The growth of Jobs in July was also slowed down. “The reduction in the stimulus would be depending on the economy performance”, said by Fed Chairman Ben S. Bernanke before Congress previous week. The Yen raised against its major peers as the Asian stocks slumped and gave a boost to the demand for haven currency. 

Emma Lawson, a Sydney based foreign exchange strategist at the National Australia Bank said that “The market is bit excited about any possible changes to the guidance of Fed on a more dovish note and that has made the U.S dollar weaker across the board”.

According to 54 economists surveyed by Bloomberg from July 18 to 22, Federal Open Market Committee has a scheduled meeting on July 30-31 and it won’t announce or reveal a decision about reducing its monthly purchases of Bonds. The half quantity of polled said the Bernanke will be going to trim bongs buying from $85 billion to $65 billion in upcoming September. On the other hand Bernanke is unsure about the outcomes and told the panels of congressional this month that “it is very early to make any judgment”. An article of Wall Street Journal said that the policy makers will probably be discussing it in a next week meeting how to describe and elaborate to the public plans for stimulus and interest rates.

Rate Range Projection by Bank 

Next Week         :   98.00 - 100.50
Next 3 Months   :    90.00 - 105.00