Forex - Dollar mostly higher in Asia after Fed comments

Forex - Dollar mostly higher in Asia after Fed comments

Submitted by caseyb23 on Thu, 08/01/2013 - 04:09

Forex - Dollar mostly higher in Asia after Fed comments

Investing.com – The U.S. dollar traded higher against most of its major rivals during Thursday's Asian session after the Federal Reserve said it will continue its USD85 billion per month asset-buying program over the near-term.�

In Asian trading Friday, EUR/USD inched up 0.01% to 1.3304 after after Germany reported that the number of unemployed people in the country fell by 7,000 in June, defying expectations for a 4,000 decline. Germany's unemployment rate remained unchanged at 6.8% in June, in line with expectations.�

A separate report showed that German retail sales declined 1.5% in June, missing expectations for a 0.4% rise after increasing 0.7% the previous month. Germany is the euro zone's largest economy.�

USD/JPY rose 0.07% to 97.96 while GBP/USD dropped 0.21% to 1.5177.�

"The committee is prepared to increase or reduce the pace of its purchases to maintain appropriate policy accommodation as the outlook for the labor market or inflation changes," the Fed said in a statement.

"The committee today reaffirmed its view that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens," the Fed added�

USD/CHF inched down 0.01% to 0.9262 while USD/CAD nudged down 0.02% to 1.0276. In U.S. economic news out Wednesday, the Commerce Department said the U.S. economy grew 1.7% in the second quarter. The first-quarter growth rate was revised down to 1.1% from 1.8%. The average for the last 12 months remained at 1.4%.�

The ADP private payroll survey showed non-government employers added 200,000 jobs last month. Analysts expected the addition of 180,000 new jobs. The Labor Department delivers the July non-farm payrolls report Friday.�

Chicago area PMI rose to 52.3 this month from 51.6 in June. Economists expected a July reading of 54. Readings above 50 indicate expansion.�

Ahead of the official July PMI reading out of China, AUD/USD fell 0.20% to 0.8968 while NZD/USD dropped 0.24% to 0.7968. The U.S. Dollar Index inched up 0.02% to 81.76.