Fundamental Analysis, Fundamental Analysis Forex
October 30, 2013 @ 8:39 am

US dollar holds gains ahead of FOMC and jobs data

Broad bias for US dollar strength remains today, with markets waiting for the Federal Reserve policy announcement later today at 2pm New York time.

The Asian session was relatively quiet, with little in the way of news or data. Markets will be driven by the FOMC decision. There will also be private US jobs data from ADP later today.

Markets expect the Fed to continue with the current stimulus program and keep buying $85 million bonds a month.

The US dollar maintained gains after a strong rally against the yen yesterday and having risen 0.78% since Friday, to trade just above 98.08.

The euro remains weak against the broadly stronger dollar, also being hurt by comments yesterday by ECB Governing Council member Ewald Nowotny. He said the ECB has few tools to weaken the euro’s exchange rate, which is weighing on some euro zone economies.

The euro edged lower against the dollar early in the session to reach 1.3732 before finishing the session flat. Just a few days ago the euro/dollar pair hit a 23-month high of 1.3831.

Against the yen, euro was little changed to end the session at 134.94.

The Australian dollar slid to 0.9457 early in the session before bouncing to 0.9494, with a 0.17% change. The aussie is still reeling from RBA Governor Glenn Stevens’ comments yesterday when he aid the Australian currency was overvalued.

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