USD capitalizes on Euro-zone, Japanese news
- Last Updated on 15 February 2012
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The US dollar was largely bullish throughout yesterday's trading session, as news out of both Europe and Japan sent investors to the safe-haven currency. Following the credit downgrade of several EU countries, the euro tumbled against the greenback, dropping as low as 1.3126 before staging a mild upward correction. Against the yen, the dollar was boosted after the Bank of Japan announced that it was increasing its asset-buying program in an attempt to strengthen Japan's economy.
Turning to tomorrow, traders will want to pay close attention to the meeting of euro-zone finance ministers. The meeting will finally determine whether Greece receives its bailout package or not. If the news out of the meeting is positive, investors are likely to move their funds back to the euro which could cause the dollar to stage a reversal.
Additionally, the US TIC Long-Term Purchases figure, scheduled to be released at 14:00 GMT, has the potential to generate some market activity. Should the figure come in above the forecasted level of 62.3B, the greenback may be able to extend today's gains. At the same time, if the indicator comes in below expectations, the dollar may see a downward correction.