The US Dollar, which had been up most of the session, was trending downward on Wednesday after policy minutes from the Federal Reserve’s meeting showed that the Central Bank is concerned that by easing up on the stimulus measures enacted over the past fourteen months it could cause an economic aftershock. The revelation doused hopes that there will be an interest rate hike in the near future and sent a Dollar which was trading mostly higher into a negative pattern. The minutes specifically addressed the unemployment issue; it is the consensus of the Fed that the rate will remain higher for a long while and that it is possible that they might need to increase their asset purchasing program which ultimately translates into the figurative printing of more money. The Federal Reserve also discussed the housing issue and are seemingly worried that the rate of defaults and foreclosures are becoming alarming.
At 11:15PM GMT, the US Dollar was trading down .33% against the Euro to 1.441, down .19% to the British Pound Sterling to 1.602, down .57% to the Canadian Dollar to 1.0324, down .85% to the Australian Dollar to .9205 and down .64% against the Swiss Franc to 1.0269.
The Japanese Yen had traded mostly up early in the Asian session but quickly fell after the Japanese Finance Minister, Hirohisa Fujii, announced his resignation from the government. Mr. Fujii, seen as a financial guru who advocates fiscal restraint, was in the middle of finalizing the Japanese budget, which has widely been seen as a controversial one on the heels of a recession. The 77 year old Fujii’s resignation was effective immediately, and he cited poor health as his reason. Regardless of Mr. Fujii’s explanation, which many see as valid, Forex traders are not happy with his replacement, a deputy Prime Minister, Naota Kan, who is not as seasoned in financial governance.
At 11:30PM GMT, the Japanese Yen was down .7% to the US Dollar to 92.34, down 1.02% against the Euro to 133.05, down .91% to the British Pound Sterling to 147.96, down 1.53% versus the Australian Dollar to 84.94 and down 1.24% against the Swiss Franc to 89.81.
Written by Finexo.com