Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Forex: USD To Rebound Ahead Of Fed Beige Book- JPY Reversal Under Way  Join our daily free Newsletter

MENAFN - DailyFX - 26/11/2012

No. of Ratings : 0
Add to Mixx!


 


Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

9977.73

9988.6

9972.97

-0.04

41.14%

Forex_USD_To_Rebound_Ahead_Of_Fed_Beige_Book-_JPY_Reversal_Under_Way_body_ScreenShot072.png, Forex: USD To Rebound Ahead Of Fed Beige Book- JPY Reversal Under Way

Although the Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) remains little changed on the day, we’re seeing the greenback threaten the lower bounds of the upward trending channel carried over from the previous month, but the recent weakness in the reserve currency may be short-lived as there appears to be a bullish divergence in the 30-minute relative strength index. As the USDOLLAR appears to be carving a short-term bottom around the 9,975 figure, the series of higher lows should pave the way for further dollar strength, and we may see the ascending channel continue to take shape in December as the Federal Reserve turns increasingly optimistic towards the world’s largest economy. As the recovery becomes more broad-based, we should see Fed Chairman Ben Bernanke continue to soften his dovish tone for monetary policy, and the central bank head may endorse a more neutral tone going forward as the region gets on a more sustainable path.

Forex_USD_To_Rebound_Ahead_Of_Fed_Beige_Book-_JPY_Reversal_Under_Way_body_ScreenShot073.png, Forex: USD To Rebound Ahead Of Fed Beige Book- JPY Reversal Under Way

Indeed, the Fed’s Beige Book may highlight an improved outlook for growth amid the resilience in private sector consumption along with the picking in housing, and the fresh batch of central bank rhetoric may increase the appeal of the dollar as the district banks see a diminishing risk for a double-dip recession. In turn, we may see the USDOLLAR appreciate going into the December 12 meeting as market participants scale back bets for a further expansion in the central bank’s balance sheet. Although the fundamentals reinforce our bullish forecast for the greenback, we’re seeing the relative strength index breakout of the upward tend from back in September, and we may see the index fall back towards the 61.8 percent Fibonacci retracement around 9,949 as it searches for support. Nevertheless, the shift in the policy outlook should prop up the dollar going into 2013, and we are still looking for a run at the 10,100 figure as a growing number of Fed officials see limited scope for additional monetary support.

Forex_USD_To_Rebound_Ahead_Of_Fed_Beige_Book-_JPY_Reversal_Under_Way_body_ScreenShot074.png, Forex: USD To Rebound Ahead Of Fed Beige Book- JPY Reversal Under Way

Three of the four components weakened against the greenback, led by a 0.06 percent decline in the Euro, while the Japanese Yen bucked the trend, with the USDJPY extended the pullback from 82.82. Indeed, the recent decline in the exchange rate may turn into a larger correction as the relative strength index comes off of overbought territory, but the low-yielding currency may face additional headwinds over the near-term as Japanese policy makers put increased pressure on the Bank of Japan (BoJ) to adopt a more aggressive approach in addressing the risks surrounding the region. The BoJ remains poised to carry its easing cycle into the following year as the central bank struggles to stem the risk for deflation, and the committee may show an increased willingness to undertake an unlimited asset-purchase program as board members Takehiro Sato and Takahide Kiuchi look to implement ‘powerful easing until it judges the 1 percent goal to be in sight.’ Despite the dovish remains from the BoJ, the threat of a political shift in Japan puts increased pressure on the central bank’s independence, and the Yen may continue to benefit from positive real interest rates as policy makers across the globe maintain a highly accommodative policy stance.

--- Written by David Song, Currency Analyst

To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.

To be added to David's e-mail distribution list, please follow this link.

New to FX? Watch this Video

Join us to discuss the outlook for the major currencies on the DailyFXForums


 






  MENA News Headlines
Apr 24 2014Qatar- HH Sheikha Moza Meets Mayor of Kobe Visits RIKEN Research Institution ,Qatar News Agency
(MENAFN - Qatar News Agency) Kobe April 24 - Her Highness Sheikha Moza bint Nasser Chairperson of Qatar Foundation for Education Science and Community Development (QF) today held a meeting with the ...

Apr 24 2014Qatar- Sidra-BMC Event Boosts Biomedical Research Publishing ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - A symposium organised jointly by Sidra Medical Research Centre and BioMed Central (BMC) mulled trends in research and on open access publishing here ...

Apr 24 2014Qatar- Mannai Corp Q1 Net Profit up 73% to QR 150.1 Million ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - Qatar Exchange listed Mannai Corporation (QE: MCCS) net profit is up 73% to QR 150.1 Million for the first quarter of fiscal year 2014 ending March 31 ...

Apr 24 2014Bahraini firms forecasted to grow 10 pct ,MENAFN
(MENAFN) In a report based on a study of over 650 companies across GCC, Kuwait Financial Centre (Markaz) forecasts a growth of the Bahraini companies' earnings by 10 percent in 2014, Gulf Daily News ...

Apr 24 2014Israeli Army Storms Deir Samit Village West of Hebron ,Qatar News Agency
(MENAFN - Qatar News Agency) bron April 24 - Israeli army forces stormed at dawn Thursday Deir Samit village southwest of Hebron city in the West Bank. The Israeli forces conducted raid and search ...

Apr 24 2014Qatar Airways to add more seats on Doha-Vienna route ,MENAFN
(MENAFN) Qatar Airways plans to offer more 1.700 seats on its Doha-Vienna route beginning from September 2014, according to Gulf News. The company aims to expand the growing passenger demand from ...

Apr 24 2014Qatar- QFC Authority Five-a-Side Football Tournament Kicks Off ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - Qatar Financial Centre (QFC) Authority's first Five-a-side Football Tournament is displaying dribbling skills of executives from Doha's financial ...

Apr 24 2014Georgian Justice Minister Leaves Doha ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - HE Minister of Justice of Georgia Tia Tsulukiana left Doha on Thursday morning wrapping up a two-day official visit to the country. An agreement on ...

Apr 24 2014Egyptian Premier Off to Chad ,Qatar News Agency
(MENAFN - Qatar News Agency) Cairo April 24 - Egyptian Prime Minister Ibrahim Mehlib left cairo on Thursday for Chad the first leg of a three-day two-state trip that will also take him to Tanzania ...

Apr 24 2014Qatar Stock Exchange Down 0.05% ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - The Qatar Exchange ended in the red area when trading closed Thursday at 12954.93 points (0.05%) down 6.63 points from the previous closing of 12961.56 ...

Apr 24 2014Afghan Guard Shoots Dead 3 Foreigners in Hospital ,Qatar News Agency
(MENAFN - Qatar News Agency) Kabul April 24 - Three foreigners including a doctor were shot dead and their colleague wounded when a guard of a private Cure Hospital opened fire on them in the ...

Apr 24 2014Uruguay Public Health Minister Meets HE Qatari Ambassador ,Qatar News Agency
(MENAFN - Qatar News Agency) Montevideo April 24 -Minister of Public Health in Uruguay Maria Susana Mu?iz met here on Thursday with HE qatari ambassador to the republic of Uruguay mohamed hassan ...

Apr 24 2014King bids to reassure Saudis as MERS deaths hit 85 ,AFP
(MENAFN - AFP) King Abdullah was in the Saudi commercial hub of Jeddah on Thursday in a bid to reassure a worried public as the death toll from the MERS virus hit 85. The Red Sea city has seen a ...

Apr 24 2014QBA strengthens economic ties with Kenya ,MENAFN
(MENAFN) Members of the elite Qatar Businessmen's Association (QBA) stated their willingness to cooperate with their Kenyan peers, strengthening economic ties between Qatar and Kenya, The Peninsula ...

Apr 24 2014Russian Lebanese Foreign Ministers to Discuss Situation ,Qatar News Agency
(MENAFN - Qatar News Agency) scow April 24 - Russian Foreign Minister Sergei Lavrov and his Lebanese counterpart Gebran Bassil will discuss bilateral relations at a meeting in Moscow on Thursday as ...

Apr 24 2014Kuwait inflation edges up 2.96% y/y in March ,Arab Times
(MENAFN - Arab Times) Wait city april 23 (kuna): kuwait's annual record of the general index of consumer prices (inflation) rose in march by 2.96 percent compared with the same month of last year ...

Apr 24 2014GLOBAL MARKETS SEESAW ON UKRAINE ,MENAFN Press
(MENAFN Press) The events in Ukraine have had a limited impact on MENA markets. Despite the Dubai index sliding 1.5%, trading volumes remained healthy. Quarterly corporate earnings results released ...

Apr 24 2014Australian Federal Parliament Deputy Speaker Meets HE Qatari Ambassador ,Qatar News Agency
(MENAFN - Qatar News Agency) Canberra April 24 - Australian Federal Parliament Deputy Speaker Bruce Scott met here Thursday with HE Qatar's Ambassador to Australia Yousef bin Ali Al ...

Apr 24 2014Careers UAE pushes for womens empowerment ,MENAFN Press
(MENAFN Press) Recognising the increasingly important role of UAE National women in the country's developmental march, Careers UAE 2014 offered an ideal platform to empower working women with a key ...

Apr 24 2014Saudi government to invest in medical project ,MENAFN
(MENAFN) A cooperation agreement between China International Development and Investment Corporation Limited (CIDIC) and Saudi developer Trans Sadara Company has been established to form Lana medical ...

more...


 
Click to Apply






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help