The dollar was poised for an eighth straight week of gains versus the yen and its first five-day advance in more than a month against the euro as signs of strength in the U.S. economy boosted demand for assets there.
The Bloomberg U.S. Dollar Index is up 0.6 percent since Dec. 13, set for the biggest weekly jump since the period ended Nov. 1, amid prospects the Federal Reserve will continue to dial back monthly bond buying after announcing a $10 billion cut. The yen may pare declines that see it poised for the longest losing streak since February, as no additional stimulus measures are forecast at a Bank of Japan policy decision today.
“The uncertainty surrounding the U.S. outlook is almost disappearing, which is likely to lead to dollar buying,” said Kengo Suzuki, the chief currency strategist in Tokyo at Mizuho Securities Co., a unit of Japan’s third-biggest financial group by market value. “I expect a modest U.S. recovery to continue.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.