ForexPros Daily News October 14, 2010
Greenback Tumbles as Dollar Selling Intensifies
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Forex – USD/JPY tumbles to 15-year low amid intervention fears
Forex Pros – The U.S. dollar tumbled to a fresh 15-year low against the yen on Thursday, as selling pressure on the dollar intensified following a surprise decision by Singapore’s central bank to tighten monetary policy.
USD/JPY hit 81.04 during European morning trade, the pair’s lowest since April 20 1995; the pair subsequently consolidated at 81.12, tumbling 0.83%.
The pair was likely to find support at 79.75, the low of April 19, 1995 and the all time low and resistance at 82.34, Wednesday’s high.
Earlier Thursday, the Monetary Authority of Singapore tightened policy, broadening the range of the Singapore dollar’s trading band. At the same time, the authorities said they were maintaining a policy of “modest and gradual appreciation” of the local dollar.
MAS sets policy by managing the Singapore dollar in a secret trade-weighted band against a basket of currencies, instead of setting interest rates.
The move increased pressure on the greenback which has already weakened broadly amid expectations that the Federal Reserve will begin to implement further monetary easing in an effort to stimulate growth.
Meanwhile, the yen was down against the euro, with EUR/JPY gaining 0.14% to hit 114.35.
Earlier in the day, Japanese Finance Minister Yoshihiko Noda refused to comment on the yen’s sharp appreciation.On Tuesday, Minister Noda said his government would take “bold action, which includes intervention, if needed.”
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Forex – Euro soars to 10-month high against broadly weaker dollar
Forex Pros – The euro surged to a 10-month high against the U.S. dollar on Thursday, after a surprise decision by the Monetary Authority of Singapore to tighten monetary policy intensified selling pressure on the U.S. dollar.
EUR/USD hit 1.4101 during late Asian trade, the pair’s highest since January 26; the pair subsequently consolidated at 1.4094, soaring 0.93%.
The pair was likely to find support at 1.3911, Wednesday’s low and resistance at 1.4294, the high of January 20.
Earlier in the day, Singapore’s central bank tightened policy, broadening the range of the Singapore dollar’s trading band. At the same time, the authorities said they were maintaining a policy of “modest and gradual appreciation” of the local dollar.
MAS sets policy by managing the Singapore dollar in a secret trade-weighted band against a basket of currencies, instead of setting interest rates.
The move increased pressure on the greenback which has already weakened broadly amid expectations that the Federal Reserve will begin to implement further monetary easing in an effort to stimulate growth.
The euro was also up against the pound, with EUR/GBP gaining 0.08% to hit 0.8789.
Later in the day, the U.S. was to publish official data on initial jobless claims, as well as data on inflation and the country’s trade balance.
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