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Forex pairs in this Article » EUR/USD, GBP/USD, USD/JPY
FXstreet.com (San Francisco) - The US dollar traded higher against its major rivals on Wednesday as investors remained concerned about the US shutdown, the debt ceiling and a possible default. Stocks recovered some ground after yesterday's losses slightly fueled by ultra dovish Janet Yellen nomination to be the first chairwoman in the Federal Reserve history.

However, movement wasn't much strong as decision was already priced in by the market. Late in the day, the FOMC minutes bring back the QE tapering in 2013 over the table again. This time most members of the Federal Open Market Committee still thought that it would be appropriate to taper the Fed bond-buying program this year, and even halting all QE purchases in mid 2014.

Market was briefly shocked but overall pairs returned back to previous levels. The EUR/USD lost 30 pips to 1.3485 following the minutes release but it recovered to trade back above 1.3520 and to close at 1.3520. "Needless to say, with economy crashing there’s not much hope for sustained dollar gains, nor a soon to come tapering," commented FXstreet.com Chief Analyst Valeria Bednarik in a recent report.

The GBP/USD closed below the 1.6000 level the first time since September 17. The Cable is now at 1.5950, logging its fourth negative day of the last five. The USD/JPY closed positive for second day after advancing from the 96.80 area to close at 97.35.

Main headlines in the American session:

IMF urges central banks to withdraw stimulus carefully

UK: NIESR GDP Estimate up 0.8% in September

US sells 10-year notes at 2.657% compared to 2.665% WI bid

FOMC Minutes: Most members still expect taper this year

Obama officially nominates Janet Yellen as new Federal Reserve chairwoman

Wall Street closes mixed as Obama nominates Yellen but remains in US shutdown
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