Dollar Drops as Federal Reserve Look to Maintain Low Rates for an Extended Period

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Financial Spreads: Spread Betting and CFD Trading


Forex Trading

: 20 June 2014

The shared currency climbed for the second consecutive day against the dollar after the Federal Reserve stated that it will hold interest rates at close to zero for a considerable time.

Despite the reasonably solid economic data that we have seen of late, it appears that the Fed wants to maintain a cautious tone and that attitude hurt the dollar which had been firmly on its way up.

In the end, the EUR/USD pair closed 16 points higher at $1.3607.



Forex Trading

: 19 June 2014

Slight caution ahead of the FOMC meeting triggered some buying in the euro against the US dollar during the morning session.

As the spread betting market realised that the dovish tone will be here for longer, the shared currency continued its rally, gaining 49 points to $1.3595.



Forex Trading

: 18 June 2014

The EUR/USD pair dropped 25 points yesterday to $1.3547, effectively giving back the previous day's gains.

This came as signs of inflation pressure in the US buoyed the dollar up on anticipation of higher yields attracting heightened demand for the US currency.



Forex Trading

: 16 June 2014

In a display of investor confidence, both Spain and Italy were successful in selling government bonds.

This was interpreted as yet another sign that the debt crisis in the Eurozone is finally on its way out.

Nevertheless, the common currency dropped slightly versus the US dollar, losing 13 points to $1.3539 on heightened demand for safe haven currencies following renewed violence in Iraq.


By Jonathan Sudaria, 20 June 2014


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