Forex Focus
EUR/USD
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Historical Details
- % Change
- 1 Wk -0.81%
- 1 Month -1.14%
- 3 Months -3.50%
- 6 Months 1.11%
- 1 Yr 1.32%
52 Week
- High 1.3711
- Low 1.2043
Bloomberg Median Forecasts
- Q2 2013 1.30
- Q3 2013 1.29
- Q4 2013 1.27
- Q1 2014 1.26
Twice daily commentary
17 May 2013 – Chicago: 06:00 London: 12.00; Singapore: 19.00; Melbourne: 21.00
The euro is trading lower versus the US dollar following reports the US will cut back on quantitative easing (QE).
The euro is trading at $1.2875, down a touch on the day after John Williams of the Federal Reserve Bank of San Francisco stated that the Fed will reduce the size of its stimulus package.
The Fed is currently operating a policy of QE which entails printing more US dollars, which has devalued the currency. If and when the US starts to cut back on QE we might see traders sell the euro and buy the dollar.
The US economy is showing signs of improvement; unemployment stands at 7.5%, the lowest level since December 2008.
We are not expecting any economic announcements from the eurozone today, but the University of Michigan consumer confidence report is due out at 2.55pm, where analysts are expecting a reading of 77.9. If the report comes in higher than expectations, we might see the euro fall against the US dollar, as a strong level of consumer confidence might be a further indication that QE could be reduced.
David Madden, London
GBP/USD
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AUD/USD
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USD/JPY
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Notes: Chart data based on IG's prices. Charts supplied by IT Finance. Bloomberg Median Forecasts are produced by Bloomberg by taking the median level from rates forecast by a number of contributors, which consist of leading banks and security firms.
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