Initiate the Asian trading session Wednesday (20/07/16) this morning, the U.S. dollar seemed to strengthen u.s. economic data following a night earlier that is satisfactory. In addition, the odds of the strengthening of the U.S. dollar against the Yen Japan is big enough with the growing expectations that Japan's Central Bank (BoJ) must add easing. Dollar index soared to a four-month high levels above the expectations.
The U.S. Department of Commerce yesterday evening showed U.S. Housing Starts data, jumped 4.8 per cent in the annual base be 1.19 million units in seasonal adjustment, so the more confirmed the strengthening u.s. economy. The dollar index, which records footsteps of the U.S. currency against six currencies 97,086 levels are at mayorm, a high level approach overnight at 97,148, the highest number since the 10th of March.
The sideways movement of the Dollar Index since its March 2015 is a konsolidatif phase, after that, the dollar will form another higher footing," said March Chandler, Chief Currency Strategist at Brown Brothers Harriman who was quoted by Reuters.
According to Chandler, the constructive outlook of his part estimated the strengthening Us dollar will still be intact due to the divergence of the difference towards a policy of the US Federal Reserve with most games in other advanced economies.
USD/JPY And EUR/USD
USD/JPY is stable against the yen at 106.11, and began to show a rise of thin this morning to 106.22. USD/JPY touching the number 99 on Tuesday and yesterday, becoming the highest level since June 24, when the market is shocked, by the United Kingdom's decision to leave the European Union.
Speculators are releasing their yen holdings as a safe-haven in the possibility of the addition of stimulus of the BoJ policy meeting in moneternya the end of next July.
On the other hand, the Euro dropped 0.5 percent to 1.1018 per U.s. dollar, after inhabiting 1.0998 figures on Tuesday. The European Central Bank (ECB) is also scheduled in deploying monetary policy meeting next Thursday. Draghi and his colleagues predicted will not add to the erosion.
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