US Dollar Gains on Friday, Still Vulnerable

A heap of hundred dollars US billsThe US dollar rose against its major rivals, with the exception of the Great Britain pound, on Friday. But fundamentally the currency remained very vulnerable.

Major central banks around the world shifted their stance on monetary policy, signaling that an end to the age of extra loose policy may come soon. And while the US Federal Reserve was the first one to embark on tapering of monetary stimulus, market participants doubt that it is able to maintain aggressive tightening. St. Louis Fed President James Bullard added to such doubts, saying in an interview to CNBC that he would prefer a wait-and-see approach, especially as Washington is yet to deliver any concrete reforms:

The Fed can afford to wait and see what comes out of the political process.

Net long positions on the dollar were at the lowest level in almost a year according to calculations from Reuters and the Commodity Futures Trading Commission.

EUR/USD opened at 1.1439 and closed at 1.1424 today after touching the low of 1.1391 intraday. GBP/USD declined from 1.3004 to 1.2944 initially but bounced to end the session at 1.3021.

If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.

Loading Facebook Comments ...

Leave a Reply