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Currencies start this week moving in narrow ranges

February 24, 2014

The currencies market started this week moving in narrow ranges to remain with no change from last week`s closing levels, waiting for critical fundamentals about GDP growth in the United Stated and inflation in Japan. The U.S. GDP is on queue this week with expectations to see growth slowing to 2.6% in Q4 from a previous 3.2%. This drop in growth rates may come despite having stimulus measures pumped to the financial market in that time, before the Federal Reserve start withdrawing its monetary stimulus from markets gradually by the end of last year. As for the Asian region, it is having weak fundamentals this week except Japan`s consumer price index, which is highly affecting the market. Japan`s inflation data are indicators to measure the effectiveness of the government`s stimulus measures and its, noting that the central bank and the government intend to push inflation towards 2%. EUR/USD is trading near 1.3734 levels, while GBP/USD remains near 1.6630, which is the lowest last week. USD/JPY is trading near the highest since last week at 102.67, after it kick started today`s trades at 102.52. The Australian dollar started this week with a decline against the federal currency to continue with a series of declines started last week, recording a low of 0.8956. New Zealand dollar also dropped against its American counterpart to a low of 0.8265.

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Source: Financial Markets

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