Reuters: US Dollar Report: FOREX-Dollar rises against yen, end-quarter trade dominates

Changes are afoot at Blogtrottr! By popular request, we're bringing in paid plans with some cool new features (and more on the way). You can read all about it in our blog post.

Reuters: US Dollar Report Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

FOREX-Dollar rises against yen, end-quarter trade dominates Jun 28th 2013, 11:35 Tweet Share this Email Print Fri Jun 28, 2013 7:35am EDT * Dollar up versus yen, dips against the euro * Fed's Dudley, Powell play down stimulus tapering plan * Investors square positions on last trading day of quarter By Anirban Nag LONDON, June 28 (Reuters) - The dollar rose against the yen but slipped against the euro in choppy trade on Friday, as investors squared positions on the last trading day of the quarter and the month. The medium-term outlook remained in favour of the dollar with investors increasingly pricing in the chances of the U.S. Federal Reserve beginning to turn down the taps on its asset purchase programme, perhaps from as early as September. "Today is dominated by quarter-end flows and one should not be reading too much into the price moves," said Chris Walker, currency strategist at Barclays. Large funds rebalance their investment portfolios at the end of the month and the quarter and their flows and requirements to square positions often dominate trade on the last trading day. "The dollar's uptrend remains intact going into next quarter as we are expecting Fed tapering to start in September. We forecast euro/dollar to fall to $1.26 in six months and the dollar to rise to 103 yen in the next three months," Walker added. Against the yen the dollar was up 0.8 percent at 99.10 yen, with near term resistance cited at the 55-day moving average of 99.259 yen. The dollar index, which tracks its performance against major currencies, was up marginally at 82.934, not far off Thursday's 83.171, a peak last reached on June 3. The index was on track for its second straight week of gains. But it lost some ground against the euro, with gains in the dollar partly tempered by Federal Reserve officials, who on Thursday sought to play down expectations that the central bank was about to cut back its stimulus programme. The euro was up 0.3 percent at $1.3070, with stop-loss sell orders cited at $1.3020. Markets will focus on speeches by more Fed speakers and U.S. data later in the day including Midwest business activity and consumer sentiment for June. Deutsche Bank said in a note that a recent drop in euro zone government yields was likely to weigh on the euro. Euro zone bonds, like yields on German Bunds, had risen with U.S. Treasuries but they have started to fall this week after several European Central Bank officials said that monetary policy will remain accommodative. "This (rise in yields) is now reversing, and so rate differentials which were providing support for the euro are longer doing so," Deutsche strategists said in a note. Analysts said growing worries about the euro zone's faltering economy, in contrast to the relative optimism around the U.S. economy, could hurt the single currency. This week European Central Bank President Mario Draghi flagged up downside risks to growth and said the ECB was nowhere near exiting its accommodative monetary policy. Tweet this Link this Share this Digg this Email Reprints Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions