The US dollar weakened against the euro and the Great Britain pound today after yesterday’ rally. At the same time, the currency managed to reverse yesterday’s drop versus the Japanese yen.
The dollar strengthened on the previous trading session as the Federal Open Market Committee mentioned in its policy minutes possibility of monetary tightening in the near future:
Many members stressed the data-dependent nature of the current asset purchase program, and some pointed out that, if economic conditions warranted, the Committee could decide to slow the pace of purchases at one of its next few meetings. A couple of members also commented that it would be important to continue laying the groundwork for such a reduction in pace through public statements and speeches, while emphasizing that the overall stance of monetary policy would remain highly accommodative as needed to meet the Committee’s objectives.
Yet some macroeconomic indicators suggested that time for stimulus tampering has not yet came. Existing home sales dropped from 5.29 million in September to 5.12 million in October. The manufacturing index of the Federal Reserve Bank of Philadelphia sank from 19.8 in October to 6.5 in November.
EUR/USD rose from 1.3436 to 1.3477 as of 21:45 GMT today after falling to 1.3398 earlier. GBP/USD jumped from 1.6102 to 1.6192. Meanwhile, USD/JPY surged from 100.01 to 101.14, trading near the highest rate since July 10.
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