#Daily_market_report Dollar Climbs to Seven-Year High Versus Yen - GBP/USD improves after BOE Minutes - EUR/USD in lows near 1.2520 The dollar reached a seven-year high against the yen as minutes from the Federal Reserve’s latest policy meeting show the U.S. moving toward higher interest rates while Japan pursues further economic stimulus. The dollar rallied 1 percent to 117.97 yen as of 5 p.m. New York time, after touching 118.08, the strongest level since August 2007. Japan’s currency slid 1.1 percent to 148.09 per euro and touched 148.13, the least since October 2008. The 18-nation euro added 0.1 percent to $1.2554. The U.S. central bank ended its bond-buying program last month, and cited an improving job market. The panel adopted the suggestion from some participants to add wording emphasizing the timing on interest-rate increases would depend on incoming economic data. The pound rose for the first time in six days after Bank of England minutes showed concern among some policy makers that inflationary pressure may build, reducing the need to keep borrowing costs lower for longer. U.K. government bonds fell as the minutes of the Nov. 5-6 meeting showed officials voted 7-2 to maintain the key interest rate at a record low this month, the same ratio as in October. The minutes contrast with a more downbeat assessment presented by Governor Mark Carney at the Nov. 12 Inflation Report press conference, when the BOE revised down its growth forecasts. The single currency is now suffering the better tone around the US dollar, dragging EUR/USD to test intraday lows near 1.2525/20. After a brief spike to the 1.2600 handle post-FOMC minutes on Wednesday, spot came back to normality and traded mostly around the mid-1.2500s overnight, losing the grip ahead of the opening bell in Europe. In the data front, flash manufacturing and services PMI prints are due in Euroland ahead of the advance Consumer Confidence in the region for the month of November. After yesterday’s FOMC minutes, US CPI figures have now grown in importance, with consensus expecting consumer prices to have risen at annual pace of 1.6% during October, a tad lower than the 1.7% previous. Have a good day! Infinity International, Ltd
Posted on: Thu, 20 Nov 2014 10:19:24 +0000
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