Analysis of the American trading session

During the American session on Wednesday, January 17, 2013, the US dollar showed mixed dynamics against the basket of currencies and quite high volatility, but by the closing of trades was able to regain lost ground against most competitors. The main pressure on the US dollar was exerted by a decrease in the profitability of the US government bonds in the course of American trading. Support for the US currency was the provided by publication of the Fed’s Beige Book, which pointed to the growth of business activity in the United States from moderate to more active dynamics in 11 from 12 regions. Also, the positive dynamics of the stock exchanges contributed to the strengthening of the US dollar (Dow 30 + 1.25%, S & P 500 + 0.94%, Nasdaq + 1.03%).

The Canadian dollar also showed quite high volatility against the US dollar in US trading and ended the session with a slight increase against the US currency. The main catalyst for such Canadian movement was the results of the Bank of Canada’s January meeting. During this meeting it was decided to raise the discount rate from 1.00% to 1.25%. More: “Results of the meeting of the Bank of Canada“.

Alexander Sivtsov