24, June 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

U.S. Dollar continued to grow against most major currencies. The growth of the dollar began after the chairman of the U.S. Federal Reserve Chairman Ben Bernanke said that the central bank may start to slow down the pace of bond purchases by the end of the year, carried out under the incentive program.

The currencies of the developping countries such as the Indian rupee and the Brazilian real fell sharply as investors continued to withdraw funds from developing markets assets after the Fed's statement.

The growth of the U.S. dollar contributed to a weaker-than-expected China PMI. ICE dollar index that tracks the performance of the dollar versus the six currencies grew to 82.061 against 81.301 on Wednesday night. "The expected difference in monetary policy course of the Fed, the ECB and the Bank of Japan will support the U.S. dollar throughout 2013," - said Alvin T. Tan, a currency strategist at Societe Generale.

The dollar continued to grow after the publication of data on sales of existing homes in the U.S. in May, which showed the highest sales rate since November 2009.

Earlier, after the release of the initial applications for unemployment benefits in the U.S. dollar has lost a small portion of the positions gained against other major currencies.

According to the data, the number of initial claims for unemployment benefits, which are an indicator of layoffs for the week of June 9-15 rose by 18.000 and adjusted for seasonal variation was 354.000. Economists had expected initial claims amount to 340.000.