Dollar/Euro Trend High Against the Yen reports Best Exchange Rates
Reach two year high exchange while US unemployment remains stagnant
(EMAILWIRE.COM, January 14, 2013 ) San Francisco, CA -- The dollar pared to the euro came off with a near two and one-half year high against the yen on Friday after U.S. Jobs statistics bolstered expectations of the Federal Reserve will be tightening monetary policy within the foreseeable future.
The data that was received a day following the Fed's meeting showed that certain policymakers were seriously considering an end to the bond-buying program as early as 2013, which sparked a U.S. Bond yields rally, as well as the dollar.
The pace of hiring within the U.S. Employers slowed within December, according to the Labor Department. Nonfarm payrolls grew to a total of 155,000 last month, which followed in suit with analysts' expectations, and slightly lower than the November levels. United States jobless rate held at a steady 7.8%.
"The most important point is that the latest unemployment rate data has been broadly steady for four months now, so even with decent employment growth no downward progress has been made on the unemployment rate," said Alan Ruskin, head of G10 FX strategy at Deutsche Bank in New York.
The data "will if anything push out the date for an end to QE (quantitative easing), represents solidly risk-positive numbers and will lead to some minor squeeze on recent U.S. dollar longs."
History has shown the dollar weakens when investor risk exposure increases by buying higher-yielding currencies, such as Autsralia's and New Zealand dollars. Conversely, the dollar tends to gain when investors are risk-average or safe havens.
The euro saw little change at $1.3042, when it touched the session high of $1.3058 after the release of jabs data.
The dollar rose to 0.5% to the 87.79 yen. That marks off the session peak of 88.40 yen, according to a Reuters data source.
The Fed stated that in December they would keep interest rates near the 0% mark until unemployment fell to 6.5% or lower. That statement is conditional on estimates of medium-run inflation does not exceed the 2.5% marker.
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Best Exchange Rates (http://www.bestexchangerates.com/) gives visitors all the information needed to navigate the exchange rates of currency. Use their quality converter for quick answers, or browse the many broker reviews and the “education center” to get a leading edge when it comes to understanding currency exchange rates.
The data that was received a day following the Fed's meeting showed that certain policymakers were seriously considering an end to the bond-buying program as early as 2013, which sparked a U.S. Bond yields rally, as well as the dollar.
The pace of hiring within the U.S. Employers slowed within December, according to the Labor Department. Nonfarm payrolls grew to a total of 155,000 last month, which followed in suit with analysts' expectations, and slightly lower than the November levels. United States jobless rate held at a steady 7.8%.
"The most important point is that the latest unemployment rate data has been broadly steady for four months now, so even with decent employment growth no downward progress has been made on the unemployment rate," said Alan Ruskin, head of G10 FX strategy at Deutsche Bank in New York.
The data "will if anything push out the date for an end to QE (quantitative easing), represents solidly risk-positive numbers and will lead to some minor squeeze on recent U.S. dollar longs."
History has shown the dollar weakens when investor risk exposure increases by buying higher-yielding currencies, such as Autsralia's and New Zealand dollars. Conversely, the dollar tends to gain when investors are risk-average or safe havens.
The euro saw little change at $1.3042, when it touched the session high of $1.3058 after the release of jabs data.
The dollar rose to 0.5% to the 87.79 yen. That marks off the session peak of 88.40 yen, according to a Reuters data source.
The Fed stated that in December they would keep interest rates near the 0% mark until unemployment fell to 6.5% or lower. That statement is conditional on estimates of medium-run inflation does not exceed the 2.5% marker.
About Best Exchange Rates:
Best Exchange Rates (http://www.bestexchangerates.com/) gives visitors all the information needed to navigate the exchange rates of currency. Use their quality converter for quick answers, or browse the many broker reviews and the “education center” to get a leading edge when it comes to understanding currency exchange rates.
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Customer Service
Tel: 4157669098
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.