Forex News
June 14, 2013 @ 8:00 pm

Dollar remains weak against yen, focus turns to Fed meeting

Most currency moves on Friday were mostly due to a technical correction and investors booking recent profits ahead of the weekend.

Next week is an important one, especially for the dollar, and large moves are expected. This is because the US Federal Reserve is having its policy meeting on Wednesday.

Most expect the Fed to use this meeting as an opportunity to clear up confusion for the markets about the outlook for QE (quantitative easing) and interest rates. Until recently, there had been talk of “Fed tapering”, which had sent the dollar rallying, especially against the yen, reaching new three-year highs above 103 yen.

This week was however very volatile for the dollar/yen pair since the Japanese Prime Minister disappointed markets after unveiling his growth plan, which fell short of market expectations, sending investors to demand the safe haven yen.

Yen remained strong going into the weekend, with USDJPY hovering at 95.00 yen most of the day before edging lower to 94.00.

Euro is weaker today, down 0.4 percent against the dollar, mostly due to position squaring ahead of the weekend. EURUSD was hovering at $1.3340.

Sterling made a “V” recovery against the dollar, bouncing back up from lows of $1.5615 to $1.5705.

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