US Dollar Lower On Higher Stimulus Expectations

The dollar fell against most of its major counterparts as traders weighed whether weaker U.S. economic data will spur the Federal Reserve to consider a slower pace in tapering stimulus.

The British pound reached the highest since November 2009 after a report showed U.K. house prices rose the most since October 2012. The yen gained after Japan’s economic growth unexpectedly slowed. The Australian dollar touched a one-month high following data that showed record new credit last month in China, the South Pacific nation’s biggest trading partner. The Fed on Feb. 19 releases minutes of its most recent meeting.

“There’s a feeling in the market that the Fed might slow the pace of tapering, or even pause,” amid worsening U.S. economic data, said Toshiya Yamauchi, a senior analyst in Tokyo at Ueda Harlow Ltd., which provides margin-trading services. “Dollar weakness is set 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.

Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu