For Thursday, anticipate a changed of pace for the Greenback for the coming session, as the US dollar trading picked up, clear tone of USD strength despite the slightly dovish FOMC result. The bid tone in USD was based on the linger optimism generated by a stronger than expected ADP and second quarter GDP read. Yesterday, the FOMC statement was views on the slightly dovish side as Bernanke focused comments on the soft patch of economic growth, negative effect of higher mortgage prices and the emphasis on the need for higher inflation.
Interestingly, there was no direct discussion in the policy statement of possibly monthly asset purchases later this year. However, while Bernanke stated the facts in actuality he never made any fundamental changes that would signal that asset purchases would begin to be tapers in September. And on this realization the markets will begin shifting expectations from December back to September, causing the USD to continue to find buyers.
For more details:
https://www.paxforex.com/forex-blog/signals-of-us-economic-recovery
http://www.nytimes.com/2013/08/02/b...ctory-activity-may-bolster-recovery.html?_r=0
http://www.telegraph.co.uk/finance/...economy-grows-by-1.7pc-in-second-quarter.html
Interestingly, there was no direct discussion in the policy statement of possibly monthly asset purchases later this year. However, while Bernanke stated the facts in actuality he never made any fundamental changes that would signal that asset purchases would begin to be tapers in September. And on this realization the markets will begin shifting expectations from December back to September, causing the USD to continue to find buyers.
For more details:
https://www.paxforex.com/forex-blog/signals-of-us-economic-recovery
http://www.nytimes.com/2013/08/02/b...ctory-activity-may-bolster-recovery.html?_r=0
http://www.telegraph.co.uk/finance/...economy-grows-by-1.7pc-in-second-quarter.html