By Talking Points:
- US Dollar falls to a new weekly low despite a lack of releases this week
- Greenback posts losses against the Aussie on higher inflation
A look back at the past 24 hours of Forex trading using movements in the US Dollar Index:
US Dollar 15-Minute 12:00 01/21 to 12:00 01/22 EST
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The Dow Jones FXCM Dollar Index has fallen to a new 5-day low in a week that has so far lacked a single US data release, as the Yen, Aussie, and Pound each took turns rising against the greenback on Wednesday on better than expected local releases.
The dollar decline began in the Tokyo session on the announcement of Australian inflation in Q4 at 0.3 percentage points higher than expected. AUD/USD popped 80 pips following the release and set a new 4-day high.
The dollar losses continued with the release of the Bank of Japan monetary policy decision. Although there was no policy change and the inflation outlook was unchanged, the BoJ also did not look ready to propose any further easing which may have discouraged some Yen bears and led to a decline in USD/JPY.
Finally, GBP/USD rallied to a new 14-day high on the announcement that unemployment fell to 7.1% in the September through November period, despite comments from the Bank of England minutes that the MPC is in no rush to raise interest rates.
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Charts created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to bbspier@fxcm.com .
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