Forex News USA – Dollar gains after Fed avoids more policy easing

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EURUSD pared gains in the US session after rising in the European session and into the early US session. The dollar turned back up after the Federal Reserve policy makers said the US economy picked up and refrained from announcing additional measures to stimulate the economy. EURUSD fell to 1.3731 from the US session high of 1.3827. Meanwhile, euro is under pressure as the Greek PM is being questioned by his French and German counterparts in Cannes to give some clarity in the referendum vote he decided to hold. The EU/IMF has decided to withhold the next 8 billion euro aid tranche to Greece until it receives assurances that Greece will fulfill its commitment to the bailout program.

 

GBPUSD mirrored EURUSD movements and after climbing in the day was brought down after the US Fed statement on no policy change and no more easing. This boosted the dollar and put sterling under pressure. GBPUSD fell to a low of 1.5926 from a high of 1.5989.

 

The Canadian dollar rose against its US counterpart to its highest level in almost two weeks on increased demand for riskier assets after the Federal Reserve acknowledged economic growth “strengthened somewhat” in the third quarter in the US, which is Canada’s main trading partner. The commodity-linked loonie tracked advances in North American stocks and commodities including crude oil, which is Canada’s main export. USDCAD declined by 0.5 percent after the Fed statement to 1.0125 from 1.0175.

 

EURJPY opened in New York at 107.62 and closed down at 107.41as the euro is under pressure after the IMF/EU said that Greece will not receive the next 8 billion euro aid tranche until after the referendum, and this puts Greece in danger of running out of money. USDJPY has been little changed since the Bank of Japan intervention on Monday but yen has been struggling to stay weak. UISDJPY has been hovering above the key psychological 78.00 level.