19, June 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

U.S. Dollar grew against the Japanese yen on Monday, closing a number of losses before the U.S. Federal Reserve announcement on the monetary policy which will be published later this week.

The production data for New York showed a slight increase in activity in June: manufacturing index rose to 7.84 versus -1.4 in May. Although the data exceeded economists' expectations, details of the report were less rosy, because of the falling of the two sub-indexes. The positive data indicate that more respondents improved their conditions, rather than their impairment.

NAHB Housing Market Index showed that the mood of Home Builders rose in June, and the index jumped to a seven-year high at 52. The result exceeded economists' expectations for the first time since 2006, pointing out that the housing builders were generally optimistic about the trends in the housing market. The dollar/yen was being traded at 94.81 on Monday, against 94.16 on Friday. The yen has lost almost 6% against the dollar this month.

Operations Committee on the Federal Open Market should start a meeting on Tuesday and Wednesday to submit a decision on monetary policy.