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Dollar consolidate after rebounding from a four-month high

January 21, 2014

The green Benjamin is currently narrow trading as well as the major pairs after that it dropped from a four-month high amid Treasury yields at almost the lowest level this year before the Federal Reserve meets next week to determine whether to continue scaling back stimulus. Knowing that a report released by the Wall Street Journal mentioned the Fed would cut another $10 billion for the second time in six weeks during their upcoming meeting on Jan. 28-29 . The most recent data has suggested the world's biggest economy is moving on the right track towards recovery, and therefore the Fed may resume its stimulus taper smoothly. Accordingly these correctional movements pushed the EUR/USD pair to trade up around $1.3561 while recording the highest level of $1.3569 and lowest level of $1.3516 , knowing that the pair may incline but slightly as mixed signs are seen throughout the four-hour and one-hour momentum indicators. As for the British Pound, it is also consolidating on these correctional movements driving the GBP/USD pair to trade around $1.6468 while recording the highest level of $1.6486 and lowest of $1.6400 and is most probably going to remain at consolidated levels as mixed signs; buying and selling, are also witnessed at several time scale within the stochastic oscialltor. Finally, as a result of mixed signs witnessed throughout the momentum indicators at different time charts the USD/JPY pair is consolidating around 104.13 while recording the highest level of 104.75 and lowest levels of 104.03.

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Source: Financial Markets

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